January 6, 2020

Avoiding scholarship scams

If it sounds too good to be true, it probably is. C.W. Munk, writing for The Wall Street Journal (1/6/20) offers this advice to students seeking scholarships:

1. Never pay for scholarship opportunities. 
Students should never pay to become eligible for a scholarship; avoid "money-back" guarantees. Instead of randomly searching online for scholarships, use resources provided by college counselors; see related Blog post.

2. Be wary of unsolicited offers. 
Some scammers use scholarship offers to obtain personal and financial information from students. Unsolicited offers are a major RED FLAG. If you receive a check and congratulations for a scholarship you haven't applied for notify the Federal Trade Commission at FTC.gov. "Legitimate scholarship providers don't distribute money randomly to students, and it's likely the check will bounce, or the student might be asked to send funds back for 'processing' or for an 'accidental' overpayment" all ways to bilk students.

3. Avoid giving personal information.
Beyond providing your name, year in school and email address, never give out personal information like Social Security number, driver's license, bank or credit card info. All the info the scholarship provider needs is available from the Free Application for Federal Student aid (FAFSA).

4. Beware of pressure tactics. 
If you feel you are being pressured, it could be a scam. Guarantees and unrealistic promises are further red flags.

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