Scholarship Scams: Three Ways to Spot Red Flags
Where there's a need, there are opportunities for fraud. As tuition cost has risen by more than 25% in the last ten years, more students need scholarships to pay for expenses. In their search for scholarships, fraudsters lie in wait with fake offers and false promises of assistance to steal your money or, worse, personal information. This is a real, and unfortunately common, problem for many students.
Education fraud affects thousands of people every year, according to the Federal Trade Commission. As financial situations grow more strained during the COVID-19 pandemic, it’s expected that the number of scams will only increase. Don’t let yourself fall victim to one of these schemes by learning how to spot them. Here are a few red flags to keep an eye on.
Red Flag: Asking for Money
A scholarship organization is there to provide money to students – so doesn't it seem weird if they ask for money from you? Except in a few, infrequent circumstances – and you should know and trust the organization in those instances – there should never be a cost to applying for a scholarship. Fraudsters are preying on your financial need so that you'll overlook this weird aspect of their "scholarship." Be judicious and don’t apply for it these. There will always be more opportunities for scholarships and additional ways to cut the cost of your degree
Pro Tip: Don’t apply for scholarship opportunities from you don’t trust.
Red Flag: Guarantees
When a deal sounds too good to be true, it probably is. This saying applies as much to scholarship applications as it does to life. Be extremely cautious of opportunities that promise “guaranteed scholarships.” Funding is scarce, and awards usually go to the best applicant. Keep this in mind whenever you see the promise of “free money.”
Pro Tip: Find scholarships from reputable sites. These aggregators usually filter competitions for fraud and provide trustworthy opportunities to students.
Red Flag: No Contact Information
A common requirement of scholarship applications is your contact information. After all, how can they provide you the award if they can’t get in touch with you? But make sure that this goes both ways. Before you apply, check to see if they list different ways to contact them. Email, phone number, and any social media accounts should be easily found on their website. If not, tread carefully.
Pro Tip: Always do additional research about the organization offering the scholarship. Check to see if they have an online presence or if trusted people you know have heard of them.
With these tips in mind, you should be able to spot education scams before they affect you. Don't forget – we publish new content weekly on our website! Be sure to subscribe to catch every tip on how you can avoid overpaying for your education.
