Scholarship Scams
Many legitimate companies advertise that they can get students access to lists of scholarships in exchange for an advance fee that ranges from $10 to $400. Others charge an advance fee to compare a student's profile with a database of scholarship opportunities and provide a list of awards for which the student may qualify. They don't guarantee or promise scholarships or grants.
Some scholarship search services do misrepresent their services, guaranteeing that they can obtain scholarships on behalf of students or actually award scholarships to students for an advance fee. In these cases, consumers receive only a list of scholarships or grants for which they can apply. Usually, all consumers receive the same list, regardless of their qualifications. The search companies that offer a "money back guarantee" usually require students to apply for each scholarship or grant they have listed and then offer proof that they've been denied by each one.
Other fraudulent companies provide nothing for the student's advance fee -- not even a list of sources. Still others tell students they've been selected as "finalists" for awards that require fees first. These scams usually ask for the student's checking account to "confirm eligibility for an award," and then debit the account for large fees.
Charging a lot for a service isn't illegal – what makes some of these companies fraudsters is that they collect money to find scholarships for students but never provide the information, or they misrepresent themselves as a government agency in order to appear legitimate and attract customers, or they guarantee they'll get the student full funding for college (and then don't). Still, although it's obviously legal to charge for services genuinely rendered, you should keep reading if you want to save yourself some money.
If you're searching the Internet for scholarships and visit a site that asks for your credit card or another form of payment before it'll help you find funding, you might want to keep searching. Similarly, if you or your parents are contacted by an unfamiliar organization that invites you to an "interview" or "seminar" about preparing and paying for college, do your homework. Ask your high school counselor or a college financial aid administrator whether they've heard of the organization and know it's legitimate. In many cases, such invitations are a way to get you and your parents to come listen to a sales pitch: the company wants you to pay for advice on scholarships and other funding.
Don't believe anyone who tells you the information they offer can't be found anywhere else. You can get free advice from a variety of sources. The best places to start are your high school counselor or a college financial aid administrator.
For details about financial aid scams and additional sources of free information, visit Looking for Student Aid site.
Questions and Answers
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Paying for collage could be a challenge to some; however colleges, universities and other learning institutions have made it easier for students willing to enter colleges. If you are interested in entering into a college and fear that you cannot afford it, I have good news for you.
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The prices of collect textbooks continue to rise. That's the bad news. And the good news is that there are ways to get cheap textbooks – you either rent or buy them from college bookstores online.
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Are you ever tempted by an email or an ad claiming you can "earn a college degree based...on life experience"? Don't be, say attorneys for the Federal Trade Commission (FTC), America's consumer protection agency. Chances are good that the ad is for a "diploma mill," a company that offers "degrees" or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.
Internship is a system of on-the-job training for white-collar jobs, similar to an apprenticeship. Interns are usually college or university students, but they can also be high school students or post graduate adults seeking skills for a new career; they may also be as young as middle school students in some areas.
A resume is a document used by individuals to present their background and skillsets. Resumes can be used for a variety of reasons but most often to secure new employment.
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To apply for any Direct Loan, you must complete a Master Promissory Note (MPN). The MPN is a legally binding agreement to repay your loan to the Department. In most cases, one MPN can be used for loans that you receive over several years of study.
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