How To Avoid Scholarship Scams | Signs, Tips, & Questions To Ask

No doubt about it�college is expensive. If you're a current or future college student, you're probably looking for all the help you can get when it comes to covering tuition, fees, and other costs. But as you search for scholarships and financial aid, it's important to be vigilant.

Scholarship scams are a common problem since scammers frequently target college students by offering guaranteed scholarships and false hope. These scams can lead to serious problems if the scammers get hold of your social security number, bank account, credit card number, or other sensitive information.

Signs of a Scholarship Scam

The good news is that there are a number of ways to tell a financial aid scam apart from legitimate scholarship opportunities. Let's take a closer look.

Using High-Pressure Sales Tactics

Fake scholarships often come off like sales pitches. They will use high-pressure tactics, such as suggesting a scholarship is available for a limited time only or that it's guaranteed or your money back. Any scholarship offer that sounds too good to be true or tries to pressure you into taking action fast should not be trusted.

Charging Fees and Requesting Personal Information

Legitimate scholarships will never charge an application fee, processing fee, or any other type of fee. If a scholarship offer claims you have to pay for anything, it is a scam. The same goes for personal information such as your social security number or bank account number. You should never provide these as part of a scholarship application.

Offering to Complete the FAFSA for You

Some financial aid scams come in the form of a service claiming to help you complete the FAFSA. These require you to pay a fee and send sensitive financial information. Never give out your FAFSA ID number or pay for anyone else to do the FAFSA for you.

Providing Unsolicited or Exclusive Offers

If you receive information about a scholarship that you didn't ask for, it's almost certainly a scam. Many of these offers may claim to provide access to exclusive scholarship matching services or offers for a fee, but these should not be trusted.

Lack of Contact Information

Any legitimate scholarship company should provide contact information. If you can't find a way to get in touch with the company, it's most likely a scam.

Five Tips To Find a Legitimate Scholarship

So, what are some things you can do to avoid falling prey to scholarship scams? Check out the tips below.

Always Fill Out the FAFSA Yourself

The FAFSA should only be filled out by students and their families. Never pay someone else to do it for you or provide any personal information to third parties.

Look for Scholarships with Selective Eligibility Criteria

Legitimate scholarship providers often have selective eligibility requirements. Though it may be tempting to put in lots of quick, easy applications that don't have strict standards, it's better to find more selective scholarship opportunities that require a bit more work when applying for them.

Search for Complaints and Scams

Before applying for any scholarship, do an internet search for the scholarship program's name, followed by the term complaint or scam. Those who get taken in by scams are encouraged to report them to the Federal Trade Commission (FTC), Better Business Bureau (BBB), and more, so there's a good chance you'll be able to find out if a scholarship is legit just by doing a little bit of research.

Investigate All Scholarship Opportunities

Speaking of research, you should always investigate any scholarship opportunity before applying for it. Read the fine print, the application instructions, any details that might be easy to miss. If anything sounds suspicious, it probably is.

Ask for Help

When searching for scholarships, it might be helpful to ask parents or family members to vet any opportunities before you apply for them. You could also get help from a guidance counselor or your college's financial aid office. Asking someone with more experience can help you avoid being taken in by scholarship scams.

Questions About College Scholarship Scams

Still have questions about scholarship scams? We're here to provide answers. Keep reading as we discuss some frequently asked questions you may have.

Why Did I Get a Scholarship I Didn't Apply For?

If you receive notice that you won a scholarship you didn't apply for, this is a sure sign of a scam. If you didn't apply for a scholarship, there's no way you can receive it.

Do Scholarships Ask for a Social Security Number?

Legitimate scholarships never ask for your social security number during the application process, though some may request it after you have received the scholarship. Only fake scholarship applications will request this sensitive information upfront, and giving it out can cause serious repercussions, such as identity theft.

Should the Site Ask You for Financial Information or Other Person Details?

Legitimate companies will never ask for financial information like your credit card or bank account numbers. You may be asked to provide some basic information, such as your name and contact information, but real scholarships will never request anything that compromises your privacy.

What Are Common Red Flags That Indicate a Scholarship Might Be a Scam?

As noted above, there are a variety of indicators that a scholarship opportunity might be a scam. These indicators include:

• offering unsolicited scholarship information
• sounding like a high-pressure sales pitch
• charging application fees
• guaranteeing a scholarship
• claiming you're a finalist for a scholarship you didn't apply for
• asking for sensitive or private information