Scholarship Scams

If so, then this is more than likely a scam! Every year, several hundred thousand students and parents are defrauded by scholarship scams. The victims of these scams lose more than $100 million annually. Scam operations often imitate legitimate government agencies, grant-giving foundations, education lenders and scholarship matching services, using official-sounding names containing words like "Federal", "National,"or "Foundation".

How to protect yourself from scholarships scams

This advice can help you avoid becoming the victim of a scholarship scam.

1. If it sounds too good to be true, it probably is.

2. If you must pay money to get money, it might be a scam.

3. Legitimate scholarship foundations do not charge application fees.

4. Never invest more than a postage stamp to get information about scholarships.

5. Spend the time, not the money.

6. Nobody can guarantee that you'll win a scholarship.

7. If you're suspicious of an offer, it's usually with good reason. Trust your instincts!

In summary, be wary of scholarships with an application fee, scholarship matching services who guarantee success, or advance-fee loan scams and sales pitches disguised as financial aid "seminars".