According to the Better Business Bureau, complaints against scholarship, grant and financial aid fraud have increased by 60 percent since 2006. The search for financial aid typically escalates during August and September, when parents and students are trying to secure last minute aid, making them more vulnerable to scams.
Signs That You May Be Getting Scammed
There are several warning signs to look out for during your search for financial aid:
1. If an offer sounds too good to be true, it probably is.
If a company is offering to do all the work for you, then that should raise a red flag. Many financial aidapplications require you to write essays, provide personal information or require you to provide references. Only you are permitted to provide this information on applications, not an outside agency.
2. They want you to pay large amounts of money in return for “insider” tips.
Question anyone who charges you money, or collects your credit card or checking account information inreturn of insider tips or application services. Although there are legitimate companies that mayofferthese services, be sure to investigate thecompany before using their services.
3. You have been “selected” or “awarded” and the money is “guaranteed”, or you’ll get a refund.
First of all, most legitimate scholarship sources do not proactively seek winners or recipients of financial aid. Also, there is no service that can guarantee that you will receive financial aid. And if they are offeringyou a refund, be sure to read the fine print since scammers can make it virtually impossible to receive refunds.
4. They use a questionable mailing address or phone number.
Be cautious of organizations that use a residential address or P.O. Box Address. Also, calling an organization that uses a 900 # area code will most likely cost you a healthy fee per minute!
Where Can I Report Fraud?
Find out where you can find legitimate sources to help you pay for college.