Avoiding Scholarship Scams
According to the Federal Trade Commission (FTC), unscrupulous companies
guarantee or promise scholarships, grants or fantastic financial aid packages.
Many use high pressure sales pitches at seminars where you're required to pay
immediately or risk losing out on the "opportunity." The FTC cautions students
to look and listen for these tell-tale lines:
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"The scholarship is guaranteed or your money back."
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"You can't get this information anywhere else."
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"I just need your credit card or bank account number to hold this scholarship."
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"We'll do all the work."
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"The scholarship will cost some money."
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"You’ve been selected" by a "national foundation" to receive a scholarship - or
"You're a finalist" in a contest you never entered.
If you attend a seminar on financial aid or scholarships, the FTC recommends
these steps:
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Don't be rushed into paying at the seminar. Avoid high-pressure sales pitches
that require you to buy now or risk losing out on the opportunity.
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Investigate the organization you're considering paying for help. Talk to a
guidance counselor or financial aid advisor before spending your money.
EducationQuest supplies the same help for free.
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Be wary of "success stories" or testimonials of extraordinary success. Ask for
a list of at least three local families who used the services in the last year.
Ask if they were satisfied.
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Be cautious about purchasing from seminar representatives who are reluctant to
answer questions or who give evasive answers to your questions.
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Ask how much money is charged for the service, the services that will be
performed and the company's refund policy. Get this information in writing.
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