Scholarship SCAMS!

Unfortunate, but true.

It seems those who are looking to steal personal information from unsuspecting people are always looking to prey on those in need of money. When you begin the search for a school scholarship, you enter this field and put yourself up as a target for identity thieves. The good news is that most scholarship opportunities are legitimate and should be pursued, but as you look for money for school, take steps to ensure you conduct your search safely.  It is important that you take the necessary precautions when researching and applying for scholarships and grants.

Golden Rules

• Golden Rule #1: You should never have to pay money to get money.
• Golden Rule #2: If it sounds too good to be true, it probably is.

While these may seem like common sense to you, as an adult, your student may not be as savvy yet as to be able to distinguish a scam from a legitimate scholarship opportunity.  It is very important that you help keep an eye out and keep yourself informed as to which scholarships they are applying.

Types of "Scams"

• The most common is what is usually advertised to you as a free seminar.  While many of these programs are completely legitimate, some are not. You're student has probably already received a letter or flier in the mail that advertises a free financial aid seminar or interviews for financial assistance.  Sometimes these seminars can provide some useful information, but usually at the end of your time with the organization, you'll hear a sales pitch for consulting services.  You usually and really don't need these services.  Before you sign anything, talk to your student's campus counselor about the consulting organization and they will give you guidance as to whether or not this consulting service is not just worth your time, but your money.   The reality is that they usually are not.  Most of the information you need in order to wade through the scholarship and financial aid process can be found through your campus counselor or through the Spring Branch ISD administration services.  Be a smart and skeptical consumer where these "services" are concerned.  Often times these "services" will require your family to pay anywhere from $500 to upwards of $15,000!  The reality is that oftentimes it is the parents who fall for this potential "scam" than students.  These consulting services assume that you will willingly and blindly participate out of love for your child.
• Scholarships for profit are very tempting.  This is a true scam that looks and feels just like a real scholarship, but you should recognize that it is a scan as soon as you are asked to pay an application fee.  Unfortunately, what will eventually happen should you or your parents decide to pay for this application is that your student will receive a very formal looking letter notifying them that they did not receive the scholarship.  Why?  Because nobody does!  And everyone who paid they application fee just made this scam that much richer!  Remember Golden Rule #1!
• Scholarship "prizes" will notify you or your student that they've already received an outside (non-college/university) scholarship (that they don't remember applying for) worth thousands of dollars.  Sounds great, right?  Then you will also read or be notified that in order for the money to be released, you must pay a "disbursement" or "redemption" fee for processing or tax purposes.  Golden Rule #2: If it sounds too good to be true, it is!!
• Never give your credit card information to a "scholarship" and definitely seek guidance from your student's campus counselor before giving your bank account, routing, or credit/debit card information to any "consulting services".

Know the difference between a scam and a legitimate service. First, watch out for services that guarantee results. This is not possible. There are simply too few scholarships out there for the number of people who are looking for them. If there is a money back guarantee, be sure to read all of the fine print, as you may just find that it is not so easy to get your money back as you might be led to believe.

Watch for claims that they will claim that they will do all of the work for you. This is impossible. You are the only one who can fill in the scholarship application if the service finds one that matches your profile. Having someone else do the application essay, for example, would constitute fraud.

Bottom Line:  As in life, doing the dirty work usually gets you the desired results.  The same is true in college scholarships.  How much work your student does usually directly results in how much scholarship money they receive.