As high school juniors and seniors look for ways to pay for college, the Better Business Bureau is asking them – and their parents -- to watch out for scholarship scams. Pamela Hernandez, regional director of the BBB, said they also need to be cautious when working with companies that offer to find financial aid opportunities for a fee.
"Consumers tell BBB about scammers who will sometimes pose as financial aid representatives saying that they are eligible for a guaranteed scholarship, but they need to pay a processing fee," she said. "And, of course, no one can really guaranty that you're going to be awarded a scholarship until you actually apply and win the scholarship."
Hernandez said scammers might also use a fake scholarship application to steal personal or financial information from applicants.
But there are things students can do to avoid being the victim of a scam. She said they should first check with their guidance counselor or their financial aid office for scholarship information. And beware of any unsolicited offers, "so, for example, an email, letter or a phone call that says, you've received a scholarship you've never applied for," she said. "Ask how the organization got your name and contact information and do your research. Scholarships are usually something you have to make the effort to apply for."
If you would like help finding scholarships besides what your guidance counselor's office offers, she said, there are legitimate companies out there.
Anyone who suspects a company of running a financial aid scam can report it at bbb.org.
