As a student, you will discover that there are a plethora of organizations and individuals willing to work hard to assist you in paying for school; however, there are a few who will take advantage of you through scholarship scams.
When it comes to finding scholarships and applying for financial aid and schools, it's important to know the difference between a scam and a legitimate resource. Learn how to protect yourself and your money by being aware of popular scams that target students. To learn how to spot scholarship scams, follow these guidelines:
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Never pay to apply for the scholarship
Legitimate scholarship providers don't want or need your money. They want to assist students in going to school, not make money off of you! If a scholarship requires payment to apply, it is most definitely not a valid opportunity.
Other scholarship red flags to be aware of when considering scholarship offers include:
- Guarantees
Despite how appealing it can sound, honest scholarship providers can never guarantee a scholarship.
- Unsolicited proposals
Scholarships aren't only handed out to students who haven't applied or put in much effort to obtain one.
- Obtaining information from a private bank and/or the Social Security Administration
Although scholarship applications may request certain personal information, your social security number or bank account information will never be requested. If they do, it's almost certainly not a legitimate opportunity, and you can never accept it.
- There is no way to reach them
If you have any concerns, you can contact the scholarship provider directly. It should raise a red flag if you can't find any contact details.
- Who are the winners and where are they?
Previous applicants have earned genuine scholarships. If it's true, where have all the previous recipients gone?
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Filling out the FAFSA is free – don’t let anyone tell you otherwise
The government would provide financial assistance in the form of grants and loans. Each year, you must fill out a FAFSA (Free Application for Federal Student Aid) to qualify for government aid – remember the word "free" in the title.
If you are being asked to pay to complete the FAFSA, you are most likely on the wrong page, which is most likely scamming students.
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Big bank fees should be avoided
Students are rarely charged high fees for taking out loans from reputable banks that have valid loans. If the fee seems excessive or the offer seems too good to be true (such as a large fee in return for a very low-interest rate), it most definitely is.
Before signing something, make sure you deal with a reputable bank and that you understand all fees and rates.
Never put down a deposit on a home or apartment that you haven't seen in person.
Although this may seem obvious, it happens much too often, especially among international or out-of-state students.
Students will pay a deposit right away because they don't want to miss out on a fantastic housing deal, only to discover upon arrival that the residence does not exist. Before making any kind of payment, make sure you or a friend visit the property in person.
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Should be aware of Scams on the phone and the internet
It's important to remember that, no matter how valid a phone or online request appears to be, legitimate organizations, including the government, will never ask for details about your bank account, passport, or social security card over the internet!
This particular scam appears to be aimed at foreign students, who may become confused or unaware of their situation when student visas or immigration are discussed.
Remember that the government would never ask you to wire money or make immediate payments for anything related to your education. Don't be fooled by someone who tells you otherwise!
If you're still not sure, get the person's contact details and call a government department or a school advisor to double-check the request's validity. They would almost always understand the inquiry as a ruse.
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If something seems to be too good to be true, it most likely is
This is particularly true when it comes to money. Don't be afraid to report a student scam or fake deal if you've been approached for one or have been a victim of one.
Such cases can be reported to the state's consumer protection agency, the attorney general's office, or the National Consumer League's Fraud Center. Creating such reports would aid in the prevention of other students falling victim to the same swindlers.
Conclusion
Scholarship smarts will help you avoid scholarship scams. A scholarship scammer can easily obtain your email address or phone number thanks to public social media accounts and third-party data providers. As a result, you must be aware that anything like this might happen. Remember, if anyone contacts you, it's most definitely not a legitimate opportunity.
