Do you need help paying for college? Scholarships and financial aid are a great way to help relieve some of the burden. However, you must be careful to not fall for a scam.

There are many companies and individuals that prey on honest people looking for financial help. They'll make certain false guarantees in an attempt to get money. The Federal Trade Commission (FTC) provides valuable information to help protect consumers from these college scholarship scams. Make sure you're prepared so that you're protected financially.

Common Scholarship Scam Lines

Scam artists will use a wide variety of promises and guarantees to get consumers to pay them money. Be skeptical of any language that sounds too good to be true. Examples of common lines that you may hear include:

  • This scholarship will cost you some money.
  • To hold this scholarship, we need your bank account or credit card numbers.
  • We guarantee you'll receive this scholarship or you'll get your money back.
  • This scholarship information can't be found anywhere else.
  • You won't have to do any work since we'll do everything.
  • "You're the winner" of a contest you never entered.
  • "Congratulations! You've been selected to receive a scholarship" you never applied for.

Common Scholarship Scam Techniques

Individuals running scams usually try to get applicants to pay an upfront fee. They won't receive any money if an applicant needs to receive a scholarship first. Sometimes they'll request financial information on the basis that they need to verify your eligibility. They'll then use this information to take money from your checking account or charge your credit card.

Many scam artists will offer a money back guarantee if you don't receive a scholarship. However, this guarantee will have certain conditions that'll make it impossible for you to get your money back.

Companies and individuals that participate in these scams know that they're more successful the less time you have to think about their services. They'll try high-pressure sales techniques to get you to pay without thinking it over.

Legitimate companies won't guarantee you'll receive a scholarship. They'll do their best to search for opportunities that can benefit you financially. Scam artists will make promises and guarantees that they can't deliver.

Protection from Scholarship Scams

Make sure to take your time thinking over any sales pitches. Don't crack under the pressure of thinking you're going to lose a great opportunity if you don't pay right away. Legitimate scholarship opportunities usually aren't sold through nerve-racking sales techniques.

Check out any company before you pay money for scholarship help. School advisors and guidance counselors are usually available to help potential students. Much of the help promised by companies can be found for free.

Ask many questions about the company's services. Representatives of legitimate companies should want to answer all your questions and make you feel comfortable. Beware of people that fail to answer your questions and give you the run around.

Get any information about the company's services, the amount of money you have to pay and the refund policy in writing. Make sure any promises they make during a meeting or seminar are also written down.

Questions for Your Attorney

  • Is it okay to go to seminars that promise unheard of scholarship opportunities?
  • Is there any way to get my money back if a company fails to deliver on its scholarship guarantee?
  • Is it ever okay to give my bank information to a company to check my scholarship eligibility?