Scholarship and Financial Aid Scams: What You Need to Know

Getting an education can help you excel in your career, but it can also be expensive. Scammers know this and try to take advantage of students by pretending to offer scholarships and financial aid. Learn how to spot these scams and how to protect yourself.

How Scholarship and Financial Aid Scams Work

• Scholarship Scams
  Scammers often reach out through social media, email, or mail, claiming you’ve been selected for a special scholarship or financial aid package. They might ask you to call a number or attend a workshop. These calls and workshops usually pressure you to pay right away to secure the “special” scholarships or aid.
  
  Be wary of any company that asks for a fee to apply for a scholarship. Scammers might take your money and give you nothing in return. They might also ask for your bank or credit card information to “confirm eligibility” and then steal your money. Legitimate companies might charge a fee for access to a list of scholarships, but they should never guarantee or promise you’ll get a scholarship.
• Financial Aid Scams
  Some companies claim they can help you get financial aid, like grants, loans, or work-study programs, for a fee. They might offer to handle all the paperwork for you. In reality, they’re just filling out the Free Application for Federal Student Aid (FAFSA), which you can do yourself. Sometimes, they use false information on your FAFSA, which can get you in trouble.
  
  Important Tip: Only you and your family should fill out your FAFSA. Never share your FSA ID with anyone. Scammers could use it to steal your personal information.

How to Spot a Scam

Here are some common phrases scammers use:

1. “The scholarship is guaranteed or we’ll give you your money back.”
2. “You can’t get this information anywhere else.”
3. “I need your credit card or bank account number to hold this scholarship.”
4. “We'll do all the work. You just pay a processing fee.”
5. “The scholarship will cost some money.”
6. “You’re a finalist for a contest you never entered.”

Steps to Take When Looking for Financial Aid or Scholarships

• Fill out the free FAFSA form. This is the most important step to get financial aid.
• Never pay anyone to fill out or process your FAFSA. It’s likely a scam.
• Talk to a guidance counselor or financial aid office. They can help you find legitimate options.
• Never pay at a seminar about financial aid or scholarships. If they pressure you to pay, it’s probably a scam.
• Research before paying anyone for help. Make sure they’re legitimate.

What to Do if You’ve Fallen Victim

If you’ve paid a scammer, act quickly to try to get your money back. The sooner you act, the better your chances. Report financial aid and scholarship scams to the FTC at ReportFraud.ftc.gov and your state attorney general. By staying informed and cautious, you can avoid scams and find the financial aid you need for your education.