Take Caution! Scholarship scammers are out there!

The Federal Trade Commission has offered a warning to all families seeking aid for college expenses, be wary for there are many bogus companies that will just scam hard earned money.

ABSTRACT

Bogus scholarship search companies steal money from overwhelmed families. The Federal Trade Commission is currently working to stop these scammers, and it offers warnings and tips to avoid it to all who seek financial aid. These warnings should not be taken lightheartedly for scamming has already happened right here in Oshkosh.

Scamming Companies: How They Steal

• These companies aim to steal money from families overwhelmed by the escalating costs of higher education.


• The companies lure people in by promising to help pay for costs such as tuition, technology fees, special class fees, dorm stay, and meal plans.


• Some companies promise a money back guarantee if no scholarship is found, but do not return the money if it fails to find one.


• Some companies even go as far as to print a list of bogus scholarships, these are likely to not be appropriate for the student applying.


• If the company is caught once, it simply has to pack its bags, change its names and start scamming elsewhere.
  

What the Federal Trade Commission is doing

• The FTC is filing charges against these bogus companies.


• The FTC has recently charged eleven companies for swindling money from unsuspecting families.


• The FTC has offered warnings to all families, students, and parents looking for aide for college expenses.
  

The Federal Trade Commission warnings

• While there are legitimate companies out there, there are bogus ones everyone should be aware of.


• Always check the company out before using its resources.


• Never pay money to receive money.


• Do not give out credit card numbers.


• Do not give out bank account numbers.


• Do not give out Social Security numbers.
  

Scamming that happened locally

• Susan Craigg, an aspiring nurse and recent high school graduate was scammed out of $799 from the Scholarship Search Institute.


• Al Giangelli lost, a recent high school graduate, $999, money he had worked at Burger King to earn, to a company called Financial Aid Finders.
  

Key Quotes

• The FTC warns, “If you have to pay money to get money it might be a scam. Be wary.”


• “I want to go to private school, I figure that’s cost maybe $20,000 thousand a year, probably more, and they promised to help, said they help everyone” Giangelli said, “that there’s lots of money for everyone. Now I’m worse off than before. I worked hard for that money and they stole it. Is a rip off, a damn rip off. They’re crooks is what they are.”

Additional Information

• FTC on scholarship scammers:

www.ftc.gov/scholarshipscams

• University of Wisconsin Oshkosh Financial Aid:

www.uwosh.edu/fin_aids

• University of Wisconsin Oshkosh Scholarship List:

www.uwosh.edu/fin_aids/scholarships.htm

• Free application for federal student aid (FAFSA) Financial Aid Page:

http://www.fafsa.ed.gov/

Scholarship Search Scams

Scholarship search companies have taken millions of dollars from families looking for ways to pay for college.
ABSTRACT: The Federal Trade Commission issued a warning to students and families searching for ways to fund college: be cautious using scholarship and grant search companies. You may be falling for a scam.


Fake financial aid companies take your money and give you nothing in return
· Scholarship search companies charge you for searching for scholarships and grants, might be scam you.
· Never give your personal information to these companies. Credit card numbers, bank account numbers and social security numbers might be used inappropriately.
· The FTC also warns that people with a couple children in college or who are unfamiliar with the financial aid process are most likely to fall for these scams.
· Some companies offer to refund your money if they can’t help you, but never do.


What the FTC is doing
· Freezing a company’s assets.
· Issuing temporary restraining orders that prevent them from taking part in FTC challenged activities.
· Filing charges against 11 companies that have stolen nearly $10 million from families and students.
· Even with what the FTC is doing, some companies pack up and move to another city and start all over again using a new name.


FTC’s advice
· Families and students should talk to their school counselors for advice and help in the search for money to pay for college.
· Libraries, financial aid office at school and high school counselors are free.
· Use free services exclusively.
· It is impossible to guarantee scholarships and grants, use caution.


Key Quotes
· “I worked hard for that money and they stole it. Now I’m worse off than before. It’s a rip off, a damn rip off. They’re crooks is what they are,” Al Giangelli a senior at Oshkosh East High School.
· “If you have to pay money to get money it might be a scam. Be wary,” says the Federal Trade Commission
· “We can almost always help really exceptional students and sometimes the poor. It’s those in the middle we have the hardest time with,” Matt Adamopoulos, Head of the Office of Financial Aid at University of Wisconsin-Oshkosh says.


Additional information and some tips
· www.finaid.org/scholarships/scams.phtml
· www.ftc.gov/scholarshipscams
· www.fraud.org/tips/internet/scholarship.html

Fraudulent Scholarship Searches

Students are losing money in the search for scholarships.

ABSTRACT: The Federal Trade Comission issued a warning about fake financial aid companies promising to help with the search for scholarships. Those that fall prey to these scams don't get their money back.

Faux financial aid companies take your money with no return

• Scholarship search companies offer to find scholarships for you, which confused parents and soon-to-be college students turn for help.
• These fraudulent companies charge a few hundred dollars and don't actually find anything for the customer.
• High tuition costs and multiple children make families more susceptible.
  

The Federal Trade Commission is cracking down

• Temporary solutions to the problem include freezing a fake company's assets or temporary restraining orders that prevent them from taking part in FTC challenged activities.
• The FTC has issued a warning about trusting such companies.
• Some will send a useless list of hundreds or thousands of scholarships that you might not even be eligible for.
  

Failed efforts at a refund

• The companies can change their name and move within a matter of days, making them difficult to track down.
• Even postal authorities can't track where these companies move to.

Key quotes

• "If you have to pay money to get money it might be a scam. Be wary." -Matt Adamopoulos, head of the UW Oshkosh Financial Aid department.
• "...They promised to help, said they help everyone, that there's lots of money for everyone. Now I'm worse off than before." -Al Giangelli, fraud victim

Additional information

• The FTC Public Service Announcement--http://www.ftc.gov/bcp/edu/microsites/scholarship/psa.htm
• The Council of Better Business Bureaus Alert--http://www.bbb.org/ALERTS/article.asp?ID=311
• The College Board: How to Spot a Scam--http://www.collegeboard.com/student/pay/scholarships-and-aid/408.html
  

FTC Warns College Students of Bogus Financial Aid

Jay Vickery

Writing for the Web

7/7/2009

Scholarship fraud hits as many as 300,000 students every year.

ABSTRACT: Millions of legitimate scholarship dollars awarder to college-bound students. Yet annually, thousands of students are being ripped-off in the name of financial aid. The Federal Trade Commission warns all students and their families, “Be wary.”

FTC Warns College Students of Bogus Financial Aid

Legitimate scholarships are awarded to:

· Academically exceptional students

· Students in dire economic need

· Students with special skills and talents

Fraudulent scholarship companies go after:

· Students that do not have solid, but not perfect grades

· Students who do not qualify for financial hardship, but still could use the money

· Students without exceptional music, athletic or other talent

Actions by the Federal Trade Commission

· Last month the FTC filed charges against eleven companies that bilked over $10 million from students.

· The FTC points out the difference between real and bogus financial aid service companies.

· The FTC put out a warning to all college-bound students and their families.

Key Quotes

· “We can almost always help the really exceptional students, and sometimes the poor,” said Matthew Adamopoulos, director of Office of Financial Aid. “It’s those in the middle we have the toughest time with.”

· “If you have to pay money to get money, it might be a scam,” warned the Federal Trade Commission. “Be wary.”

· “They (Financial Aid Finders) promised to help, said they help everyone, that there’s lots of money for everyone,” said ripped-off Student Allan Giangelli.

· “It’s a rip off, a damn rip off. They’re crooks is what they are,” said student Allan Giangelli.

Additional Information

· http://www.scholarships.com/ScholarshipScams.aspx

· http://www.collegeboard.com/parents/pay/scholarships-aid/21400.html

· http://www.ed.gov/about/offices/list/oig/misused/sscams.html

Scholarships Shouldn't Have a Price

Scholarships search services can be rip-offs that can take millions of dollars from students and families.

ABSTRACT: The Federal Trade Commission has issued a warning for students and families to be cautious when using a scholarship search service. Some services may charge a fee promising to find scholarships, grants and other financial aid but never help. The Federal Trade Commission has filed charges against 11 companies but can't do much after the companies get a new name and move to another state.

College is expensive

• Tuition and books are an automatic expense when attending college, even if the books are used.
• Renting or staying on campus, room and board can add to thousands of dollars a semester.
• Commuting to and from classes can be a major expense even when car pooling.
• People don't often think of the everyday necessities they need and can be a large portion of their expenses.

FTC warns perspective students

• The FTC warns students and families to be careful when applying for financial aid because it may be a scam, especially when a company is asking a fee to find financial aid for them.
• Companies may promise to find help for each and every one of the students they scam.
• Never give these companies credit card numbers, bank account numbers or social security numbers, due to the fact the companies may abuse the use of the number.
• The FTC is also warning those who are unfamiliar with the college process or those who have multiple children to pay close attention for scams.

How the FTC helps

• The FTC can take temporary restraints that prohibit companies from engaging in activities the FTC has challenged.
• The FTC can freeze a company’s assets, but these companies can move to a new city or state in a matter of days, opening a new company with a new name that continues the same practices involving the same people

Cases of scholarship scams

• Al Giangelli is a high school student living with his mother, working at Burger King.
• Giangelli saved $999 from Burger King to pay Financial Aid Finders for help.
• Giangelli never received anything from Financial Aid Finders and has lost $999, feeling he was better off without the help.

Key Quotes

• "They almost never recover any one's money," said an anonymous FTC official.
• High schools, counselors and libraries offer free services helping those who need financial aid said Matt Adamopoulos, the head of the office of financial aid at the University of Wisconsin Oshkosh.
• “If you have to pay money to get money it might be a scam. Be wary,” says the Federal Trade Commission in Washington.

Additional Information

• Key Words and Phrases To Look Out For with Other Financial Services by FTC
• Scholarship Scams: U.S. Department of Education
• Know When it's a Scam: College Board

Beware of promises from scholarship search firms

The Federal Trade Commission has issued a warning advising students and parents that scholarship search firms swindle as many as 300,000 students each year.

ABSTRACT: The Federal Trade Commission issued a statement on Thursday warning students and parents of the dangers of using some scholarship search firms. Some firms provide no services for the fees. Others provide worthless information. The FTC has filed charges against 11 such firms. Some experts advise using only free scholarship search services such as those offered by high schools, colleges, and libraries. It is unlikely that the FTC or students and their parents will ever recoup any payments made to fraudulent firms.

FTC scholarship scam warning

· The FTC issued a statement Thursday warning students and their families that many scholarship search firms are scam artists.

· These companies promise to look for scholarships that would help students pay the high costs of college tuition, fees, room and board and other expenses.

· According to the FTC, there are some legitimate firms in the field but many are companies that fast talk students and their families out of millions of dollars every year.

· Each year as many as 300,000 students fall for the swindle.

· The FTC also warns people not to give any company personal information such as credit card numbers, bank account numbers, or social security numbers.

Dangers of scholarship scams

· Once they receive advance payment for their services many firms tend to disappear.

· The FTC warning says that the company may never look for scholarships or they may send the client a worthless computer printout which lists dozens or hundreds of scholarships for which the client is not even eligible.

· In June the FTC filed charges against 11 companies, claiming they stole about $10 million from students and their families from all 50 states.

· An FTC official who asked that she not be identified stated that the FTC almost never recovers any money in cases like these.

· The FTC recognizes that many families are desperate, overwhelmed, and frightened by the high and escalating costs of a college education, especially those who have more than one child who will attend college.

· Because of this desperation, and because they are unfamiliar with the process, they are, in many cases, easy victims.

Example

· Susan Carigg, 17, a high school senior from Oshkosh, Wis wants to attend nursing school next year but does not have a lot of money.

· The Carigg’s sent $799 to the Scholarship Search Institute in Phoenix but have received nothing since sending their check.

· Post Office officials told the Carigg’s that thousands of other people fell for the same scam and are also trying to locate the company.

What can the FTC do?

· The FTC normally seeks a temporary restraining order prohibiting companies from engaging in activities the FTC has challenged, or the FTC can freeze the company’s assets.

· However, these the owners of these companies can close the company, move to another city or state, and, in a matter of a few days, open a new company with a new name and continues their illegal activities.

Key Quotes

· The FTC warns, “If you have to pay money to get money, it might be a scam. Be wary.”

· Al Giangelli, a high school senior in Oshkosh, Wis., sent $999 to Financial Aid Finders, using money he had saved from his part-time job. He received nothing. “Now I’m worse off than before. I worked hard for that money and they stole it,” he said. “It’s a rip-off.”

· High school and college counselors provide free services, and so do libraries, said Matt Adamopoulos, head of the Office of Financial Aid at the University of Wisconsin – Oshkosh. He recommends that people use free services exclusively.

Additional Information

· FTC Public Service Announcement - Fraudulent Scholarship Services

· How to Avoid College Scholarship Scams and Tricks

· Free Scholarship Searches

Scholarship or Scam

Students and families need to be careful not to be scammed when it comes to finding financial aid and scholarship opportunities.

ABSTRACT: The Federal Trade Commission has found numerous scholarship scams throughout the United States. They said there are ways to avoid becoming another victim, and ways to protect yourself in the financial aid search.

FTC Study:

·The FTC found as many as 300,000 students and families get sucked in by scams each year.

·Last month, the FTC filed charges against 11 companies, claiming they stole nearly $10 million from students in the United States.

·In many instances, the companies promised to pay for tuition as well as room and board.

Those Affected:

·Al Giangelli

oHe wanted to go to a private school, and figured he would need financial help.

oHe sent $999 to Financial Aid Finders, a company promising to help him with schooling costs.

• The money he sent in had been saved up over time from working at Burger King.

·Susan Carigg

oShe wanted to go to nursing school, but could not get any funding.

oA flyer in the mail for the Scholarship Search Institute said she could receive a large amount of funding, so her family sent $799 to the company.

oMonths after sending the initial payment, the family has not heard anything back from the company and cannot find their headquarters anywhere.

Other Alternatives:

·To avoid scams, try to use free services.

·Both high school and college counselors as well as libraries can provide help.

Tips to Protect Yourself:

·Do not give out any personal information like bank account, credit card or social security numbers.

oReleasing this information can result in more financial problems, such as someone emptying an account or running up charges on a credit card.

·Do not give in to companies asking for money in return for money.

• This is often a red flag and is normally a scam.

Key Quotes:

·“They promised to help…now I’m worse off than before. I worked hard for that money and they (Financial Aid Finders) stole it.” - Al Giangelli, student

. “We can almost always help really exceptional students, and sometimes the poor. It’s those in the middle we have the toughest time with.” - Matt Adamopoulos, head of Financial Aid at UW-Oshkosh

. “If you have to pay money to get money it might be a scam. Be wary.” – FTC

Additional Information:

. Detailed information about loans, scholarships, savings and more

. Tips you need to find and apply for financial aid or scholarships

. How to apply for other types of aid, such as grants