How to Avoid College Scholarship Scams

The amount of financial aid available to pay for college has drastically reduced over the past two decades. Due to the 2008 recession many banks are no longer offering student loans or are reducing the amount of student loans offered. Many prospective college students and their parents fall victim to college scholarship scamps. Here are eight smart ways to avoid being a victim of college scholarship scams.

Apply

Apply to at least five colleges. Be sure at least one selection is a state college. Apply every year for the FAFSA at fafsa.gov.

Fees

Legitimate college scholarships do not require paying a fee.

Reputation

All profit and non-profits companies can be Google searched to ensure their legitimacy or searched with the State Attorney General of Office of State Secretary.

Words

Signs of college scholarship scams include using words such as “guaranteed” or affiliated with a government agency or “promises you a scholarship”, high success rates, quotes of unclaimed or unused financial aid.

Location

If the address includes a P.O. Box or Mail Drop in the address it is probably a scam. If the company cannot be found online it is probably a scam. If no phone number is provided or when called you are unable to get valid answers to your questions it is probably a scam.  

Search

Use the Federal Student Aid Information Center to search for a list of known scholarship scams.

Criteria

If there are no specific criteria and everyone is eligible to receive a scholarship it is probably a scam. If you are told the scholarship will be applied for on behalf of you (the student) it is probably a scam.

Personal Information

Requests for personal information such as credit card number, bank account number or SSN it is probably a scam.