How to Spot College Scholarship Scams

How to Spot College Scholarship Scams

BIG Ideas:

  • Scammers are targeting students and parents with promises of “free and easy” scholarship money for college.
  • Never provide bank/credit card info when applying for a scholarship.
  • Before you apply for any scholarship, research the organization that’s offering it.

“Free money for school!” What parent or student doesn’t like the sound of that – especially with the soaring cost of education today?

That’s the whole idea behind college scholarships and grants – money for school you don’t have to pay back. Unfortunately, fraudsters have caught on and have come up with creative scams that promise “free and easy money for school” to defraud unsuspecting victims. Here are some ways to protect yourself:

Know the Warning Signs

How can you identify a potential scholarship scam? Here are 8 red flags to look out for:

  1. Too good to be true promises

    Guaranteed money with little or no effort? That’s a tell-tale sign of a scam! Be wary of communications that tout “guaranteed scholarships” or “exclusive access” to scholarship opportunities.

  1. Upfront fees

    Legitimate scholarships never require payment to apply or receive funds. Scam scholarships, however, might ask you to pay a “processing” or “application” fee. Don’t fall for it! It’s how scammers make quick cash and gain access to your personal or bank account information.

  1. Urgent, high-pressure tactics

    Have you ever received an email or letter claiming you’re a “lucky winner” and need to respond immediately? It’s usually a sign of a scam. Scammers love to create urgency so that you get excited or panic and hand over your personal information or money. Legitimate organizations will give you time to respond and meet their requirements.

  1. Requests for sensitive personal information

    Legitimate college scholarship providers will not ask for sensitive personal information beyond basic contact and school information, such as your Social Security number, bank account details, or credit card number. If you’re asked to provide this information when applying for a scholarship, don’t do it.

  1. Poor grammar and spelling

    Pay close attention to the quality of the communications you receive. Are they poorly written with errors that would make your grammar teacher cringe? That’s often a sign of a scam (though not always). In contrast, legitimate organizations typically have well-written, professional-looking materials.

  1. No contact information or vague details

    When reviewing a scholarship opportunity, look for contact information. At Brazos, we include our physical address, a working phone number, and email on all communications. In contrast, scammers will often provide vague details or no contact information.

  1. Fake endorsements

    To appear legit, some scammers might claim to be endorsed by reputable schools, organizations, or government agencies. Always verify these “endorsements” by contacting the organization identified directly. Also, look for logos or seals that appear copied and pasted from official websites.

  1. Unrealistic requirements or conditions

    Some scholarship scams may require you to pay to attend a seminar, purchase education materials, or sign up for services to receive an award. These “requirements” are often created to take your money. Remember, real scholarships are designed to provide you with money for school, not cost you money.

Learn How to Protect Yourself

  1. Do your homework

    Before applying for college scholarships, research the organization online, check for reviews, and see if they’re listed on reputable scholarship databases, like the College Board’s Scholarship Search Tool. You might even recognize a scholarship from a familiar name.

    You can also check with the admissions or financial aid office to verify the scholarship organization.

  1. Stay up to date on popular scams

    Fraudsters never stop finding ways to scam so make sure you stay informed about the latest techniques. Websites like the Better Business Bureau (BBB) and the Federal Trade Commission (FTC) often list known scams and information about how to protect yourself.

  1. Know where to look for legitimate scholarships and grants

    There are so many legitimate scholarships offered by organizations, schools, and even the federal government. At Brazos, for example, we offer a $1,000 No-Essay Scholarship and our $5,000 Murray Watson, Jr. Scholarship.

    To learn about other opportunities, talk to your school’s guidance counselor or the financial aid office of the school you’d like to attend.

A trusted resource to make college dreams possible

For more than 40 years, Brazos Higher Education has been helping make education more affordable for students and parents. As a Texas non-profit, we can offer you savings on a range of student loans and guidance to help you every step of the way. Contact us today!