Scholarship Scam Warning Signs
Kathy Campbell Palmer, TG Regional Account Executive
In efforts to pay for college costs, many students and their families fall prey to scholarship scams. There isn't a fool-proof method for identifying such scams, but some warning signs include guarantees of winning, implying that anyone is eligible, or pressure tactics.
According to the Federal Trade Commission (FTC), here are six warning signs to avoid becoming a scholarship scam victim. Students and their parents should look out for any scholarships that claim:
- "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.
Many organizations that offer bogus scholarships may seem reputable, but applicants should be critical of any scholarship that "sounds too good to be true." Applicants should research the organization offering the scholarship at the Better Business Bureau.
Generally, students and their parents looking for college money should avoid any questionable or unfamiliar organizations altogether and get a list of scholarships from school guidance counselors or college financial aid officers.
Kathy Campbell Palmer is a Regional Account Executive with TG serving schools in CASFAA. You can reach Kathy at (800) 252-9743, ext. 2506, or by e-mail at kathy.palmer@tgslc.org. Additional information about TG can be found online at www.tgslc.org.