Scholarship Scams

Unfortunately, in their efforts to pay the bills, many students and their families are falling prey to scholarship scams. The Federal Trade Commission (FTC) cautions students to look for tell tale lines:

  • "The scholarship is guaranteed or your money back."
  • "You can't get this information anywhere else."
  • "I just need your credit card or bank account number to hold this scholarship."
  • "We'll do all the work."
  • "The scholarship will cost some money."
  • "You've been selected" by a 'national foundation' to receive a scholarship; or
  • "You're a finalist" in a contest you never entered.

Here are some likely signals you're looking at a scam:

  • Application fees. You should not have to pay money to get monty. Even a fee as low as $10 should be a warning.
  • Guaranteed winnings. No legitimate scholarship will tell you in advance that you have won it.
  • Everybody is eligible. Scholarship sponsors do not hand out awards to students simply for breathing.
  • No phone number. Most legitimate scholarship programs will give you a phone number on their application forms. If there is no number, be wary.
  • Requests for personal information. If an application asks for your bank account number, credit card number or Social Security number, run away from it fast.
  • Phone notification. If you are told by phone you have won a scholarship, and the caller doesn't offer to confirm in writing, be careful. If the caller asks for money, hang up.

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