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
Good job.
ReplyDeleteI can't get the FTC link to work, but I wonder if that's part of the cyberattack on the federal government.