How to Avoid Scholarship Scams
As you find and apply for scholarships and learn more about financial aid, you may come across some unsavory websites and scholarships that are scams. These “too good to be true” scholarship opportunities are designed to cheat you out of money and time.
According to the United States Federal Trade Commission (FTC), students who come across a possible scholarship scam should report them to the FTC or to their state Attorney General’s office.
Scholarship scams may look “official” and attempt to imitate the government or legitimate organizations. Other scholarship scams may offer to help students get money through the FAFSA or other legit financial aid applications.
However, there are some telltale signs that can help you avoid these scholarship scams.
Here are the biggest red flags that you should be aware of:
- Application fees
- Paying for “special” access
- Applications that ask for personal financial information
- “Guaranteed” scholarships
Keep on reading to learn more about these warning signs so you can tell whether a scholarship is legit or not!
If a scholarship application requires you to send in an application fee, this is a major red flag. Legitimate scholarships will never ask you to send in any money! Scholarships that require an application fee will rake in tons of money and then only give a small percentage back in the form of a “scholarship.”
Paying for “special” access
If you come across a scholarship website that claims that they have “special” or “preferred” access, this should be a warning sign. Individuals claiming to have special access to scholarships are very likely misleading you.
Applications that ask you for personal financial information
Similar to application fees, you should be wary of any application that asks you for any personal financial information. Any credible scholarship is not going to ask for banking or credit card information.
The last big red flag is any scholarship that “guarantees” you a specific outcome. Yes, some colleges will “guarantee” scholarships if you meet certain requirements for GPA and test scores, but private scholarships that guarantee anything should be me with skepticism.
What should you do if you come across a scholarship scam?
So what happens if you do come across one of the above scholarship scams? What should you do?
First of all, you should not apply for the scholarship. If you are filling out an application and see an application fee, stop what you are doing and don’t go any further.
You can also report potential scholarship scams to prevent other students from getting scams.
Scholarship scams are real things that you may encounter when searching for scholarships. It is wise to be aware of the common tactics that these scammers use. In general, if something doesn’t feel right about a scholarship or if it seems “too good to be true,” you should do some trust your gut and do some further research.