Beware: Scholarship Scams

Beware:  Scholarship Scams

More than 300,000 people are cheated by scholarship scams each year according to the National Association of Student Financial Aid Administrators. Students lose over $5 million a year to bogus companies with official sounding names containing words like “National”, “Federal”, “Foundation”, or “Administration”.

The following advice can help you avoid becoming the victim of a scholarship scam:

  1. If you must pay money to get money, it might be a scam.
  2. If it sounds too good to be true, it probably is.
  3. Spend the time...not the money.
  4. Never invest more than a postage stamp to get information about scholarships.
  5. Nobody can guarantee that you’ll win a scholarship.
  6. Legitimate scholarship foundations do NOT charge application fees.
  7. If you are suspicious of an offer, it’s usually with good reason.

If you suspect a scam, you can contact the Better Business Bureau, the State Attorney General’s Office, or report the offer to the National Fraud Information Center.