May 2, 2007

Scholarship Scammers

Posted in Scholarships, Student Loan News at 3:28 PM by Joe From Boston

The LA Times has a very short, but very important article on avoiding scholarship scammers.  It is very important that you be VERY careful when pulling out your credit card in regards to scholarships.  Remember – scholarships are free money.  You can find all the information yourself with the internet and a little determination.

Scam Watch

David Colker
April 29, 2007
The scam: College scholarships made easy

The pitch: “The scholarship is guaranteed or your money back!”

How it works: As students make decisions about higher education, scammers are busy with financial aid schemes. Some legitimate companies offer scholarship database searches and other services. But the Federal Trade Commission has won settlements against fraudsters who guaranteed scholarships and delivered nothing but talk.

The charges: Last year, the FTC won a U.S. District Court order to ban National Student Financial Aid from offering student aid services. The agency charged that the company raked in more than $10 million by falsely promising to obtain better financial aid packages.

Consumer advice: The FTC has a guide to avoiding scholarship scams. The agency doesn’t take action against companies that charge fees for information that individuals can find themselves. There must be unfulfilled promises and misrepresentations in a pitch for it to be deemed possibly illegal.



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