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Signs of a Bogus College Scholarship Offer
The Federal Trade Commission recently released a media and consumer alert regarding scholarship scams which target high school student
who are looking for a means to finance their college education. Instead of paying for college, these scams often result in unsuspecting
students losing money.
The FTC lists six warning signs of a fraudulent scholarship:
1. "This scholarship is guaranteed or your money back."
No one can guarantee that they'll get you a grant or scholarship. "Refund Guarantees" often have conditions or
strings attached. Get refund policies in writing before you pay.
2. "You can't get this information anywhere else."
There are many free lists of scholarships available. Check with your school or library before you decide to pay someone to
do the work for you.
3. "I must have your credit card or bank account number to hold this scholarship."
Don't give out your credit card or bank account number on the phone without getting information in writing first. It may be
a set-up for an unauthorized withdrawal from your account.
4. "We'll do all the work."
Don't be fooled. There's no way around it. You must apply for scholarships or grants yourself.
5. "The scholarship will cost some money."
Don't pay anyone who claims to have a scholarship or grant for you. Free money shouldn't cost anything.
6. "You've been selected by a 'national foundation' to receive a scholarship," or You're a "finalist" in a contest
that you never entered.
Before you send money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
Need Money For College?
Check with your school's guidance counselor or local librarian for free information about current scholarships before you pay someone for
the same or similar scholarship lists.
For more information about planning and paying for college, visit the Web site for Sallie Mae.
Sallie Mae is a financial services corporation that specializes in funding student loans.
If you want more information, please contact:
National Fraud Information Center
(800)876-7060
Federal Trade Commission
PO Box 996
Washington, DC 20580
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