Scholarship Scams
Federal Trade Commission site developed to help students and parents avoid unethical scholarship database providers.

How can you tell the good from the bad?

Popular (but false) claims

"For a small fee, we'll give you a list of scholarships."

- Never spend money on a fee-based matching service. The biggest and best award databases are available for free on the internet, including FastWeb: www.fastweb.com.

"$6.6 billion in scholarships went unclaimed last year."

- Statements about unclaimed awards are misleading. They generally refer to tuition reimbursements that aren't available to the public. Scholarships are competitive and are awarded.

"You are guaranteed a minimum of $1,000 in awards."

- A service cannot guarantee any scholarships because they have no control over the scholarship judges' decisions.

"We have a 96 percent success rate."

- These false success rates indicate the percentages of students the company has successfully matched with the database, NOT the number of students who actually receive money.

"We'll need a bank account/credit card number to verify your information."

- Your bank account and credit card information is confidential. A legitimate scholarship provider will not ask for this information.

"We will do all the work for you."

- To win a legitimate scholarship, you must submit your own applications, write your own essays and solicit your own letters of recommendation. There is no way to avoid doing the work.

If you suspect a scam

1. Save all forms you receive from the suspect company. Keep copies of written details about the offer and
any correspondence, e-mails or other paperwork. Make sure all materials are dated.

2. Take notes during any seminar or phone conversations. Record the date, time, phone number and the
person's name with whom you spoke. Also, include a detailed account of your conversation.

3. Report the suspected scammer to any of the following organizations:

National Fraud Information Center (NFIC): 1-800-876-7060; www.fraud.org

Federal Trade Commission (FTC): www.ftc.gov

State Attorney General's Office: www.ag.state.la.us. Ask about filing a complaint with the Bureau of
Consumer Protection.

Better Business Bureau (BBB): (703) 276-0100; www.bbb.org

United States Postal Inspection Service (USPIS): 1-800-654-8896

This information is reproduced with the permission of FastWeb.com