(BBB) — For students struggling to pay for tuition, a sudden scholarship offer or a financial aid company that guarantees results can seem like a dream come true – but it could also be the setup for a scam.
Read more or hear from Better Business Bureau Regional Director Pamela Hernandez below:
Higher education is expensive, and scammers take advantage of that to trick students and their families. They pose as financial aid representatives from the government, a university or a nonprofit, sometimes using words like “national” or “federal” to sound more official.
The scammers’ goal is to get you to pay an up-front fee to find “guaranteed” scholarships or grants, or to have you fill out a fake application with sensitive personal information. Unfortunately, it’s likely you’ll get nothing in return.
Fraudulent companies may promise a money-back guarantee, but they also set conditions that make it impossible to get a refund. Legitimate companies can sometimes help you find scholarships, but they will not guarantee results.
It generally doesn’t cost money to find information about scholarships or apply. BBB, which awards a Student of Ethics scholarship for higher education, recommends free options such as speaking with a high school counselor or researching online.
How can I find real financial aid?
- Check for federal aid first. Students can fill out the Free Application for Federal Student Aid (FAFSA) and find other financial aid resources at studentaid.gov. This no-cost application is a good starting point for your search.
- Ask trusted sources. Discuss your options with your guidance counselor or financial aid office – they’re there to help you! They may recommend scholarships or free resources for finding aid. If you’re considering a paid service, ask them if they have experience with it.
- Do your research. Investigate any financial aid company you consider using. Check the company’s BBB Business Profile at BBB.org to find consumer reviews, ratings and other information that can tell you how the company operates.
- Get references. If you plan to use a paid service, ask for the names of families in your community who have used the service in the last year so you can discuss their experience.
How do I avoid scholarship scams?
What should I do if I find a scam?
