Scholarship Scams
There are hundreds, if not thousands, of legitimate websites where comprehensive information about scholarships and financial aid are available. At the same time there are also websites and organizations that are scams, designed to take your money.
Signs of a potential scam:
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Organizations or websites that charge a fee to apply for a scholarship
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Financial aid seminars that turn out to be a high pressure sales pitch and require you to purchase a product or service before they start
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Scholarships that are on a first come, first served basis
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Sites that claim to have special influence or an “in” to a scholarship sponsor
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Organizations that do not have a listed phone number, or for which the address is a mail drop (not to be confused with a P.O. Box, which is commonly legitimate)
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Sites that guarantee you will find or receive a scholarship
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Scholarships that are not solicited and come to you through direct mail or email spam
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Organizations that promise someone will do the work for you
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Sites that request an upfront fee
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Scholarships that ask you to respond in a week or else they will refund your money
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Organizations that require you to purchase a product or service before you can access their website or database
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Scholarships that indicate everyone is eligible to apply
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Sites that request personal information upfront, such as social security driver’s license or checking account numbers
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Organizations that claim they will notify you of your status by phone
Fraudulent Guarantees
Sometimes scholarships come with guarantees. This could also be a warning sign and we recommend you research the guarantee carefully.
When is a scholarship guarantee fraudulent?
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When the organization guarantees you will win a scholarship
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When the guarantees are loaded with too many conditions and restrictions
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When requirements are not detailed in writing or upfront
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When guarantees are deceptive or misleading
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When the company does not honor the guarantee
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When guarantees give an expectation of success, or the impression that there’s no risk
Reporting a Scam
If you find a scholarship website or come in contact with a scholarship organization that does not appear to be legitimate, you can report them to these organizations: