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:
- University of Wisconsin Oshkosh Financial Aid:
- University of Wisconsin Oshkosh Scholarship List:
www.uwosh.edu/fin_aids/scholarships.htm
- Free application for federal student aid (FAFSA) Financial Aid Page:
Good.
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