Fall season indicates the time for students to return back to school. However, the South Carolina Department of Consumer Affairs says scholarship and student air scams are becoming a growing problem, so they are releasing some tips to making sure you stay out of harm's way.
Here are some tips Consumer Affairs is providing for students and parents as they head back to school:
Before signing on or paying up, however, students and parents should do their homework. According to www.FinAid.org, students are defrauded out of an estimated $100 million every year. How does this happen? Scholarship and student aid scams promise too-good-to-be-true deals and lure students into paying upfront and giving away personal information.
Clues You’ll Lose
- You must pay to apply or participate.
- Past recipients are nowhere to be found.
- Shoddy websites are difficult to operate.
- You are notified via telephone.
- Everyone is pre-approved or qualified.
- Awards are guaranteed.
- Personal information is requested.
Tips to Avoid Scams
- Avoid unsolicited offers.
- Ask questions…lots of questions.
- Don’t trust verbal promises. Get it in writing.
- Read the fine print. Remember: The finer the print, the bigger the hint.
- Never give personal information.
- Always research a company whether it seems suspicious or not.
- Keep records of all documents and conversations.
Hunt Here
Because finding information on legitimate aid and scholarships is just as critical as avoiding scams, begin your search with reputable website such as:
U.S. Department of Education - http://www.ed.gov/index.jhtml
Free Application for Federal Student Aid (FAFSA) - http://www.fafsa.ed.gov.
Additionally, the College Scholarship Fraud Prevention Act of 2000 guarantees the following protections and rights to students:
- Increases penalties for scholarship scammers
- Eliminates a loophole that allowed scammers to keep their spoils
- Requires the U.S. Department of Education and Federal Trade Commission to publish scholarship scam information on their websites
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