College Scholarship Scams

These days, scams are everywhere. It is estimated that families lose millions of dollars each year due to scholarship fraud. To protect your finances, make sure that you are very careful when searching for information on student aid. As always, if it sounds too good to be true, it probably is.

Here are some of the lines that should instantly raise a red flag:

• “This scholarship is guaranteed- or your money back!”
• “We just need to get your credit card / bank account information to secure your scholarship.”
• “You are a finalist in our scholarship contest.” (Even though you never entered a contest.)
• “This information is exclusive- you can’t get it anywhere else.”
• “Pay this one time fee and the scholarship is yours.

There are many other lines that fraudulent organizations may try. The most important thing you can do is be aware. When in doubt, ask questions. This will help you determine the legitimacy of the information or offer that you are receiving.

If you would like to file a complaint or if you need additional information, call the Federal Trade Commission (FTC) at 1-877- FTC-HELP (1-877-382-4357), or visit them on the web at www.ftc.gov/scholarshipscams.