We often recommend that students search for scholarships outside of those awarded by the university to help finance the cost of education. Many state and national organizations and corporations have funds available to students who meet their criteria. At the same time, we also warn students to watch for scholarship scams. According to finaid.org, several hundred thousand students and parents are defrauded out of more than $100 million annually. Below are some tips on how to avoid being scammed.
• Never pay a fee to perform a scholarship search. There are many free scholarships search engines available online. For a list, check out the Outside Scholarship section of our website.
• Never send money upfront to apply for a scholarship, even if a scholarship is supposedly “guaranteed or your money back.” Money isn’t free if you have to pay to get it.
• Be suspicious of any organization that tells you that you have won a scholarship that you never applied for and now you must pay a fee to redeem it.
• Watch for scholarships that claim anyone is eligible. All scholarship sponsors are looking for students who best meet certain criteria, whatever that may be.
• You must do the leg work involved in searching for scholarships. Do not believe claims that a service will apply to scholarships for you.
• Never give out personal information such as your social security number to an organization that is unfamiliar to you.
• If in doubt, check with your financial aid counselor. We can help you verify if a foundation is legitimate.
For additional information on spotting a scam and reporting scholarship fraud: http://www.finaid.org/scholarships/scams.phtml.