Watch out for Scholarship Scammers

It happens every year. High school seniors and their parents are defrauded by scholarship scammers; people who promise to help them land scholarships and financial aid they wouldn’t otherwise receive.

One financial aid organization believes these scammers defraud families out of more than $100 million dollars a year.

Because college costs scare nearly all of us, and because many people do not realize that there is money available to help them send their children to college, these scammers have found it very easy to find and exploit their victims.

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 letters look good. The letterhead design, the font style, and other elements are calculated to give the appearance of an established, legitimate organization. And, that can be all it takes to fool families…to get them to take the next step on the path to being scammed.

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

After a few sentences of doom and gloom about the high cost higher education, the sales message begins. We can help you get more in scholarships and financial aid, they say. We can tell you what colleges don’t want you to know, they say. Work with us, they tpromise, and you won’t have to be concerned about college costs.

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.

The gathering, whatever it is called, is a well rehearsed sales pitch. The gist…you need money, we can help you get it. And, nowhere do you get the one piece of information you need most…everything of value these people can offer you is available elsewhere, for free.

The initial presentation is followed by an individual meeting with a high pressure salesperson who uses a well-formulated approach…like those of the very worst car salespersons…developed to collect up to $2,000 and a signed contract from families before they have had too much time to think about it.

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.