With the rise of technology, scammers are becoming a lot more sophisticated toward getting your hard-earned money. There are so many families seeking scholarships for their children that may become susceptible to gimmicks in hopes of money for college. The key is to remain persistent but not desperate on your debt-free journey. Persistence allows you to remain consistent in your methods, but keeping your emotions in check avoids clouding your judgment.
What to look for in scholarship scams:
1. If it requires you to pay to enter it’s more than likely a scam. You don’t have to pay to apply for your FAFSA form. FAFSA is a government website and is free to apply. In addition, avoid scholarships that have “application fees”. If an application is charging a $5 fee and receives 5,000 applications they are receiving a hefty profit and may not even reward a scholarship. Legitimate scholarships may cost you time and effort but never money. Beware of sharing your bank account information.
2. If it uses the word “guarantee” run! The only thing guaranteed is that tomorrow will come. Thousands of students are vying for an opportunity, a legitimate organization cannot guarantee you anything.
3. Creates a false sense of urgency. Of course, all applications have deadlines but do not let FOMO cloud your judgment. No one would be contacting or pressuring you to apply for their scholarship.
4. Falsely claims to be a foundation or tax-exempt charity. Check whether the organization really is a foundation using the Exempt Organizations Select Check tool, formerly known as IRS Publication 78 (source).
5. Says they are approved by a reputable organization. Some scams will falsely claim to be affiliated with the U.S. Department of Education or other government agencies. The federal government is prohibited from endorsing private businesses! (source)
If you miss a deadline, it’s not the end of the world, just note what you have to do for the next one. Remember, there’s no scholarship season you can find funding all year long. Above all, protect your identity. Do not share your sensitive information online (includes your credit/debit cards, account numbers, social security numbers, addresses, etc). Trust your gut, if it’s too good to be true then it probably is.
To learn more about scholarship scammer tactics and how to report possible scams please click here.
