Scholarship Scams
The Federal Trade Commission’s Bureau of Consumer Protection cautions you to beware of companies that tell you:
- “This scholarship is guaranteed or your money back.” No one can guarantee that you will receive a grant or a scholarship. Refund guarantees often have conditions or strings attached.
- “You can’t get this information anywhere else.” There are many free lists of scholarships available. Check with your school or library before you decide to pay someone else to do the work for you.
- “May I have your credit card/bank account number/social security number to hold this scholarship?” Don’t give out this information without getting information in writing first. It may be a set-up for an unauthorized use of this information.
- “We’ll do all the work.” Don’t be fooled. There’s no way around it. You must apply for scholarships or grants yourself.
- “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist” in a contest you’ve never entered. Before you send money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
FastWeb! also offers the following tips to warn of Scholarship Scams:
- Fees: You shouldn't have to pay to search for or apply for scholarships.
- Sponsors go out of their way to sound "official": Scammers sometimes us official-sounding words like "national", "education", or "federal" or they display on official-looking seal to fool you into thinking they are legit.
- No contact information: Legitimate sponsors should provide contact information upon request. If the sponsor does not have a valid e-mail address, phone number, and mailing address (NO P.O. boxes) upon request, that could be a sign of a scam.
- Unsolicited scholarships: If you are called to receive an award for which you never applied, be alert -- it is most likely a scam.
- Pressure tactics: Don't allow yourself to be pressured into applying for a scholarship, especially if the sponsor is asking for money up front.
- Claims of "exclusive" scholarships: Sponsors don't make their scholarships available through only one service.
- Your questions aren't answered directly: If you can't get a straight answer from a sponsor regarding their application or what will be done with your information or other questions, proceed with caution.