Avoid
Scholarship Scams
(ARA) - Kanan
Singh wants to become a pediatrician. But like most college
students, she wonders how she'll pay for her education. Walking
across campus at Modesto Junior College, in Modesto, Calif., she
thought she'd been handed the answer: a flyer for a financial aid
seminar that promised to help students find scholarships.
Singh and her father drove to the advertised hotel in nearby
Salida, Calif. They sat in a conference room with 30 other people
while two women and one man, all well-dressed and articulate, gave
their presentation. They "guaranteed you will be able to get at
least $5,000 dollars from the scholarship packet they provide,"
Singh says. "And if you don't, they'll give your money back."
Everything about the presentation seemed legitimate. "One of the
women claimed she was a high school counselor," Singh says. The
presenters even discussed how to avoid fraud. Convinced, Singh's
father spent $300 for three scholarship packets, one for her, one
for her brother and one for her sister.
But when the packets arrived in the mail "the letter said there was
nothing that fit my qualifications in order for me to receive
scholarships," Singh says. The money-back guarantee was impossible
to collect because the presenters had disappeared.
Singh's story is not unusual. In 2003, the Federal Trade
Commission received 594 complaints of financial aid fraud and took
legal action against two companies suspected of operating these
types of scams. Combined, the two companies allegedly defrauded
approximately 52,000 consumers out of $23 million.
Con artists are eager to prey on a student's need for financial
assistance. Here are ten warning signs that can help you avoid a
scam:
1. Fees: You shouldn't have to pay to search for or apply for
scholarships. You can find scholarships for free online by using
reputable Web sites like FastWeb (www.fastweb.com).
2. Credit card or bank account information needed: You should
never have to give credit card or bank account information to award
providers.
3. Scholarship guarantee: No one can guarantee that you'll win a
scholarship because no one can control scholarship judges'
decisions. Also, be wary of "high success rates" -- they usually do
not refer to actual award winners.
4. No work involved: You can't avoid putting in time to fill out a
scholarship application.
5. No contact information: Legitimate sponsors should provide
contact information upon request. If the sponsor does not supply a
valid e-mail address, phone number and mailing address (not a PO
box), that could be a sign of a scam.
6. Unsolicited scholarships: If you are called to receive an award
for which you never applied, be alert -- it's most likely a
scam.
7. Pressure tactics: Don't allow yourself to be pressured into
applying for a scholarship, especially if the sponsor is asking for
money up front.
8. Claims of "exclusive" scholarships: Sponsors don't make their
scholarships available through only one service.
9. Sponsor goes out of their way to sound "official": Scammers
sometimes use official-sounding words like "national," "education"
or "federal" or they display an official-looking seal to fool you
into thinking they are legit. Check with your school if you
question a scholarship provider's legitimacy.
10. Your questions aren't answered directly: If you can't get a
straight answer from a sponsor regarding their application, what
will be done with your information or other questions, proceed with
caution.
Courtesy of ARA Content
