According to the National Association of Student Financial Aid (NASFA), more than 350,000 people fall victim to scholarship scams every single year. Want to know how to protect yourself?
The Federal Trade Commission, Bureau of Consumer Protection says to watch out if:
- You're told the "scholarship is guaranteed or your money back." (Not possible, unless the organization you're dealing with is the one actually giving you the money - otherwise, who gets scholarships is completely OUT of their control!)
- You're told "this information isn't available anywhere else." (Uh huh. What about all the free resources available online, at your local library, college or university?)
- You're told that they "just need your credit card or bank account number to hold the scholarship for you." (Right...and you've also won a million dollars in the lottery, someone you've never heard of in Nigeria has 20 million dollars they want to put into your bank account and the Brooklyn Bridge is for sale again!)
- You're told "This is a great investment, plus, we'll do all the work for you. (And the check is in the mail, and your blind date is really going to call you, and...well, you know!)
- You're told "Congratulations! You've been selected as a finalist in the national/regional scholarship program, or some foundation has chosen you to receive a scholarship, or you're the winner in a contest" - only you didn't enter one. (Since this is one of the biggest scams going, make sure you always do a little background research. Contact the Better Business Bureau, the Federal Trade Commission, your state's Attorney General. Also check into the online scambuster sites.)
- You're told "You have the opportunity to attend this once-in-a-lifetime financial aid seminar." (Only it's really just a big sales pitch to get you to spend your money on high priced products, or lists that you could find somewhere else for free.)
- You're told that "there is a small processing fee in order for you to receive your scholarship." (Wrong answer! Free money is just that - FREE! If someone wants to charge you, run away!)
- You're told "we have a matching scholarship program and we guarantee success" (big scam!) or that a company will give you the money upfront - and you can pay it back when your scholarship arrives (advance payday loan scheme - with huge interest rates), or any type of "processing or application fees" are involved (why not just throw your money out the window - at least you've got a better chance that whoever finds it will need it more than you do!)
