Scholarship Scams

The Division of Financial Aid warns students to be wary of scholarship search firms that charge a fee for their services. The Federal Trade Commission has investigated numerous consumer complaints in recent years about such firms and found fraudulent activity. The Division of Financial Aid recommends the use of free scholarship search services available at your local library and on the internet at www.fastweb.com. For more information, see the Scholarship Scams Tip Sheet released by FastWeb.

SCAM WARNING SIGNS

• You have to pay a fee
• Money-Back Guarantee
• Credit Card/Bank Account Information Required
• Offers Exclusive Information

COMMON SCAMS

• Phony scholarship-promises cash if you pay a registration fee
• Phony scholarship matching service-pay a fee and they guarantee you will win awards
• Phony educational loan-pay a fee and receive a low interest rate
• Phony financial aid seminar-a high pressure, poorly concealed sales pitch
• Phony grant-promises to replace loans with grant if you pay a processing fee

REPORTING SCAMS

• National Fraud Information Center (NFIC)
  File an online complaint at www.fraud.org, call their toll-free hotline at 1-800-876-7060, or write:

National Fraud Information Center
PO Box 65868
Washington, DC 20035

• Federal Trade Commission (FTC)
  To report suspected fraud, visit www.ftc.gov to use the online consumer complaint form, call 1-888-FTC-HELP (1-202-382-4357), or write:

Federal Trade Commission
CRC - 240
600 Pennsylvania Ave., NW
Washington, DC 20580

State Attorney General's Office
File your complaint with the Consumer Protection Division in your state