Scam scholarships are disturbingly common today. A fraudulent scholarship could be no more than a grab for the student’s personal and financial information. Scholarships that charge money for application, as well as fee-based scholarship application programs, could simply be lining their own pockets.
How is it possible to tell which scholarships are legit and which are scams? Rusty Tweed has 8 helpful tips for sorting out the beneficial scholarships from those that might trick you or damage your financial future.
1. Beware of Scholarships with Application Fees
When a scholarship asks for money up front, you can be reasonably certain that it is a scam. Even if the scholarship is only charging a few dollars to apply, don’t be taken in. If they are able to get thousands of students to apply and pay a small fee, they will be sitting on a tidy profit.
Another area to watch out for are fee-based scholarship “matching services”, which claim to give you better access to the financial aid than if you applied on your own. These are fraudulent as a whole.
2. Watch Out for Certain Red Flag Words
Some red flag words to watch out for include “National,” “Federal,” and “Administration.” The federal government only gives out scholarships through its college financial aid program, which you can apply for at any time. Another word which might be problematic is “Foundation,” though many legitimate scholarships use this word in their names.
3. Research Thoroughly
If you can’t find anything about the scholarship online other than its application form, be wary. It might be the first year the scholarship is in operation, or it might be a scam. Do as much due diligence as you can to ensure that your scholarship is real before you apply. Scholarship providers are generally interested in advertising their scholarships as much as possible, so the more you find about it online, the better. Look for legitimate news sources.
4. Guarantees
Any guarantee that you will win scholarship funds has to be treated with suspicion. Nearly all scholarships are competitive, meaning that hundreds or thousands of other students will apply. Scholarship matching services should also be taken with a grain of salt.
5. Everyone is Eligible
Scholarships aren’t interested in handing out money to everyone. Usually they will put forward specific criteria for their applicants, such as study in a specific field or at a specific university. All scholarships that are open to any applicant should be treated warily. For example, Rusty Tweed’s scholarship is based on an essay contest regarding the benefits of drug-free living.
6. No Contact Information
The scholarship’s web site should have a contact address and telephone number so that students can verify the existence of the sponsoring company. The scholarship should have a physical address and not a PO Box number or mail drop.
Students should be able to call or email a scholarship provider with questions before they apply. If there is no way to contact the scholarship provider other than a web form application, be wary.
7. Requests for Personal Information
A legitimate scholarship will ask for your name, address, telephone number, email address, and the name of your college or university. Any personal information above and beyond these basics should be treated with suspicion. Any personal or banking details such as a Social Security number, bank account number, credit card number, date of birth, or your parents’ names could be used to commit identity theft and open accounts in your name.
8. If They Contact You First
Reputable scholarship providers do not cold call or email potential applicants. They may promote their programs online, but they do not generally send letters or emails to invite people to apply. Words to watch out for include “invitation number” and “immediate confirmation.”
In Closing
It is disappointing that so many fraudulent scholarship programs exist, but it is possible to apply for aid for college without exposing your personal information or paying for a product that does not exist.
Protect your personal and financial information while you are applying for scholarships by following these 8 easy tips. If you do encounter fraudulent scholarship programs, report them to the Federal Trade Commission.
Best of luck to you in your college search and in your quest for legitimate scholarship offers.