Avoid Scholarship Scams

Watch out for scholarship scams. Every year, many families lose money at the hands of bogus scholarship companies who claim to have access to billions of dollars in private funding. They say these monies are unclaimed student aid. Before you use a scholarship service, make sure a reputable company backs the service.

A scholarship service may be a scam if they tell you:

  • the scholarship is guaranteed or your money back
  • you can't get the information anywhere else
  • they will do all the work
  • the scholarship will cost money
  • they need your credit card or checking account number in advance

To check a scholarship service, talk to your college financial aid office or call the National Fraud Information Center at 800/876-7060.