PUBLIC SERVICE MESSAGES FROM
THE FTC
TYPE OF SCAM: FRAUDULENT SCHOLARSHIP SERVICES
WHERE TO PLACE: Financial Services
BACKGROUND FOR YOUR INFORMATION:
Many legitimate companies advertise that they can get students access to
lists of scholarships in exchange for an advance fee that ranges from $10 to $400. Others
charge an advance fee to compare a student's profile with a database of scholarship
opportunities and provide a list of awards for which the student may qualify. They don't
guarantee or promise scholarships or grants.
Some scholarship search services do misrepresent their
services, guaranteeing that they can obtain scholarships on
behalf of students or actually award scholarships to students for an advance fee. In these
cases, consumers receive only a list of scholarships or grants for which they can apply.
Usually, all consumers receive the same list, regardless of their qualifications. The
search companies that offer a "money back guarantee" usually require students to
apply for each scholarship or grant they have listed and then offer proof that they've
been denied by each one.
Other fraudulent companies provide nothing for the student's advance fee
-- not even a list of sources. Still others tell students they've been selected as
"finalists" for awards that require fees first. These scams usually ask for the
student's checking account to "confirm eligibility for an award," and then debit
the account for large fees. |
PUBLIC SERVICE MESSAGES FOR BROADCAST OR PRINT:
Scholarship scams can cut into your college savings. Before you spend $ on a
scholarship search, do your homework. For more information, contact the Federal Trade
Commission at http://www.ftc.gov or Sallie Mae at
http://www.salliemae.com. (35 words)
Need $$$ for college? There are no guarantees when it comes to scholarships. Do your
homework before you pay for a service. For more information, contact the Federal Trade
Commission at http://www.ftc.gov or Sallie Mae at
http://www.salliemae.com. (38 words)
Scholarship scams can shrink your college savings. Before you send $ to a scholarship
service that guarantees results, do your homework. For more information, contact the
Federal Trade Commission at http://www.ftc.gov or
Sallie Mae at http://www.salliemae.com. (38
words)
No one can guarantee you a scholarship for college. For more information, contact the
Federal Trade Commission at http://www.ftc.gov or
Sallie Mae at http://www.salliemae.com. (35 words) |