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