Watch out for Scholarship Scammers | Grants

By DanielZ.Kane
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Word Count: 514

Despite all of the stories to the contrary, there are probably numerous honest people selling used cars. The same can't be said about people who claim to be able to help families, for a fee, increase the amount of college financial aid they will receive.

Estimates vary, but it seems likely that these crooks...and that is an appropriate word...collect in excess of $100 million annually from unsuspecting families.

They do it by preying on families worried about the cost of college; families who know little or nothing about scholarships and financial aid; families who are often easy targets.

It all starts with a letter from a company with a name that makes it sound like a benign organization whose mission is to assist students and their families.

The letter often looks like it comes from a top college or university. Thats not an accident. The font, the grade of paper, and the logo are chosen by the scammers to give the letter an academic look. Its junk mail alright, and its far more malicious than most, but thats not what it looks like. As a result, instead of throwing the letter away, many families open it. Thats mistake number one.

The letters almost always begin by frightening families about the high cost of college.

But, the letter says, we can help. We can show you how to receive more financial aid. In some instances the letters will mention secrets colleges dont want you to know. Sometimes the letters will talk about millions of dollars in "unused" scholarships and financial aid; money just waiting to be found by and given to students who know the ropes.

What all the letters have in common is that they invite families to a free seminar, often at a local hotel. Because the letter offers the hope of extra financial aid, and because the evening is free, many families accept the invitation. Thats mistake number two.

Ultimately, attendees are subject to a group sales pitch for the companys services. The pitches are not exactly the same, but all promise that their services will result in students receiving more money for college. And, none tell you that everything they offer is either unnecessary or can be gotten elsewhere, at no cost.

After the group presentation, families are invited to meet individually with staff members sometimes called counselors. In the world of sales, these folks are called "closers"...folks trained to close the sale. Their job is to get families to sign a contract and pay a fee of up to $2,000 before leaving. Unfortunately, they succeed all too often.

Don't be the victim of financial aid con men (and women). There are lots of good websites offering free scholarship searches and financial aid advice. And, high school counselors and college financial aid counselors will gladly give you advice and answer your questions. There is no need to turn elsewhere.

Most important of all, never pay anyone for financial aid advice or services. Never.

About the Author

Daniel Z. Kane is a university dean with websites offering information on scholarships, online schools, online degrees, and online colleges .

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