For high school juniors and seniors, landing a scholarship could be the difference in whether someone is able to go to their dream college or not.
A 2023 Gallup survey showed that 55% of people who never enrolled in college or dropped out before they could earn their degree attributed their unenrollment to the cost of university.
With so much financial uncertainty on the line, it’s a prime opportunity for scammers to take advantage. As a new school year begins and some students are thinking about college options, 5 On Your Side points out key warning signs of a scholarship scam.
One of the biggest red flags is any scholarship offer that asks for money up front.
Ayssa Parker, the Director of Communications at BBB Eastern Carolinas, said that if you’ve been awarded a scholarship or grant, you typically don’t pay anything.
“If you are asked to pay something, that’s the time to take a step back, do a little bit of research and actually see if this is legitimate or not,” Parker advised.
A recent scam reported to the Better Business Bureau came from a fake FAFSA-passing webpage. FAFSA, or the Free Application for Federal Student Aid, is a form completed by current and prospective college students to determine their eligibility for student financial aid.
The real FAFSA page will always come from a government web address, which ends in .gov, since the form and its assets come directly from the U.S. Department of Education.
Fake FAFSA sites often have a .org address to make it seem more legitimate and collect a $35 fee. Keep in mind the free part in FAFSA, as the application will never ask you to pay to apply.
If you are asked for your credit card information while filling out the FAFSA form online, you are not at the official government site.
Another sign of a scholarship scam to watch out for is anything unsolicited. If you receive an email that says you are eligible for a certain amount of money, do some further research into the credibility of the offer and the specifics of why you are eligible.
That’s why it’s important to research any scholarship provider fully. Check out their recent recipients, reach out to anyone you might know who has received this scholarship and review their relationships to the college.
When in doubt, scholarship resources are available and broken down at studentaid.gov or talk to a school guidance counselor.
