With college tuition on the rise and student debt at an all-time high, it’s no surprise that students and their families are looking for any opportunity to lessen the financial burden. Scholarships and grants can help ease that load — but unfortunately, they’ve also become prime targets for scammers.
Fraudsters take advantage of students’ hopes by offering fake scholarships, promising money for college, or pretending to be from legitimate organizations. Instead of funding your education, these scammers are out to steal your personal information, bank details, or upfront fees.
It’s important to be informed and cautious when applying for financial aid. Here’s what to look for — and how to stay protected.
Common scholarship scam tactics
∎ Charging fees. Scholarships should never require payment. If an application asks for a “processing,” “application,” or “redemption” fee, that is a red flag. Legitimate scholarships give you money — not the other way around.
∎ Guaranteed wins. No one can guarantee you’ll receive a scholarship. Be wary of phrases like “you’re a finalist” or “this award is guaranteed.” These tactics are designed to build trust and urgency.
∎ High-pressure tactics. Scammers often use pressure to rush you into a bad decision. If someone urges you to act quickly or claims you’ll miss out on a “limited time” opportunity, take a step back.
∎ Requests for personal data. A scholarship application should not ask for sensitive details like your Social Security number or bank account information right away. Be skeptical if an organization insists on this without a clear and legitimate reason.
∎ Too-good-to-be-true offers. If a scholarship sounds unusually generous or doesn’t have specific eligibility requirements, it’s worth a second look. Scammers use vague language to cast a wide net.
∎ Impersonation of legitimate groups. Some scammers pretend to represent government agencies, educational institutions, or well-known foundations. Always double-check contact details, websites, and email domains before proceeding.
Tips for safe scholarship searching
∎ Start with trusted sources. Use official websites like StudentAid.gov, which is operated by the U.S. Department of Education, and other reputable nonprofit scholarship search tools. Your high school guidance counselor or a college’s financial aid office is also a great starting point.
∎ Do your homework. If a scholarship opportunity looks suspicious, research the organization offering it. Search online for reviews, complaints, or scam reports. Scammers often use names similar to real organizations — check for subtle misspellings or odd-looking URLs.
∎ Never pay to apply. As a rule of thumb, if you’re asked to pay money upfront to apply for or redeem a scholarship, walk away. Legitimate awards don’t come with a price tag.
∎ Be cautious with unsolicited offers. Be skeptical if you receive a scholarship offer you didn’t apply for, especially if it asks for personal or financial information. Scammers often send emails or letters that look official to trick people into responding.
∎ Guard your identity. Share personal data only with verified, secure websites. Look for “https” in the URL and avoid sending information over public Wi-Fi.
∎ Watch for copycat websites. Some fake scholarship websites mimic the look of real institutions. Check for typos, inconsistent information, and outdated logos. When in doubt, contact the organization directly using a verified phone number or email.
∎ Report scams. If you’ve been targeted by a scholarship scam, report it to BBB Scam Tracker, the Federal Trade Commission (FTC), or your local authorities. Your report can help protect other students from falling victim.
A note to parentsParents play a vital role in helping students navigate financial aid safely. Encourage your child to bring you any scholarship opportunities they’re considering. Review applications together and talk openly about what makes a source trustworthy. Staying involved can make all the difference.
To learn more about spotting and avoiding scholarship and financial aid scams, visit BBB.org/AvoidScams. If you or someone you know has encountered a scam — even if you didn’t lose money — share your experience at BBB.org/ScamTracker. Together, we can help keep education-focused families safe and informed.
Jan Diaz is the President/CEO of the Better Business Bureau serving Northern Indiana, which serves 23 counties.Contact the BBB at 800-552-4631 or visit www.bbb.org.
