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Kenzie Margiott
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RENO, Nev. — As students continue their search for college funding, the Better Business Bureau (BBB) is warning of scholarship scams that prey on those seeking financial aid. These scams often promise grants or scholarships but require upfront fees that never lead to the promised funds.
The BBB cautions against companies that charge for finding financial aid opportunities, urging students and families to be wary of websites, seminars, or other schemes that promise scholarships or grants for a fee.
Scammers often pose as representatives from the government, universities, or nonprofit organizations, using official-sounding terms like "National" and "Federal." They claim recipients have won scholarships or grants without applying and demand a "processing fee." In some cases, scammers pressure victims to apply for "guaranteed" scholarships, requiring a fee that results in no funds being sent.
Another scam involves sending a fake check for a scholarship, instructing recipients to return payment for taxes or fees. The check eventually bounces, leaving victims out of pocket.
To avoid falling victim to these scams, the BBB advises:
The BBB emphasizes the importance of vigilance and due diligence in the search for financial aid to avoid scams that seem too good to be true.