Scholarship Scams

During your scholarship searches, don't fall prey to unscrupulous companies. According to the Federal Trade Commission, unscrupulous companies guarantee or promise scholarships, grants or fantastic financial aid packages. Many use high-pressure sales tactics at seminars where you are required to pay immediately or risk losing out on the "opportunity."

Every year, thousands of students and parents are defrauded by scholarship scams. Scam operations frequently imitate legitimate organizations, foundations, or government agencies. In general, you need to be wary of scholarships with an application fee, scholarship-matching services who guarantee success, advance-fee loan scams, and sales pitches disguised as financial aid "seminars."

If you have questions about the legitimacy of a scholarship or a financial aid consultant company, check with the scholarship office at the college you are planning to attend, the Better Business Bureau, or the Federal Trade Commission.

Follow the links below for additional information about scholarship scams.

The Federal Trade Commission

FinAid! Scholarship Scams