Read the following tips on how to avoid common scams:
- No processing fee is required to obtain Title IV grants from
the Department of Education.
- A student should never provide bank account or credit card
information over the phone unless he or she initiated the call and
trusts the company he or she is calling.
- A legitimate organization only needs information such as
hobbies, past grades or other demographic information.
- Search firms cannot "guarantee" scholarships or complete the
- Although a business may say millions of dollars go unclaimed
each year, most of the unclaimed dollars are employer-paid benefits
that are unavailable to many students.
- For information about preventing financial aid scams, visit www.studentaid.ed.gov/lsa.
For free, reliable information regarding the financial aid
search process, contact a high school counselor or financial aid
office at a local college, university or career technology center.
Financial aid seminars may also be sponsored at a nearby high
school or higher education institution.
Been Scammed? Need to Report or File a Complaint?
If you think you've already been scammed by a financial aid
search firm, report the fraud to the Federal Trade Commission
(FTC). The FTC has an online complaint
form and a hotline at 877.FTC.HELP (877.382.4357 or
866.653.4261 for the hearing impaired).
Online Resources About Avoiding Scholarship Scams and Identity