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