60% of students used scholarships in the school year 2021–2022, according to InvestigateTV – SallieMae.com. Consumer experts cautioned about the risks of scholarship fraud while applying, despite the fact that this money can be a lifeline for students and their families.
Students are a prominent target for scammers, according to Melanie McGovern of the Better Business Bureau (BBB), because the majority of applicants are in their late teens and have excellent credit histories.
To help you prevent these frauds, the BBB offers a number of tips:
- Before responding to unsolicited emails from schools or guidance counselors, do some research and double-check.
- Talk directly with your school counselor or a college financial aid office to ensure an offer or application is authentic.
- Don’t be hesitant to phone a company directly.
- Be extremely skeptical of any promises of money from scholarships that you didn’t apply for and steer clear of extreme pressure to pay or act immediately
McGovern suggested that parents and students consider their alternatives. Although some trustworthy businesses may charge for finding scholarship opportunities, she pointed out there are free alternatives available across the nation.
The Federal Trade Commission (FTC) also issues a cautionary note on scholarship fraud. They discussed the following top warning signs of scams:
Any company guaranteeing a scholarship application
receiving a request for account numbers in order to hold a scholarship
claims that their information is unique and unavailable elsewhere.
Anybody looking for scholarships and financial aid can use the free, comprehensive resources provided by the US Department of Education (DOE).
