What is a Scholarship Scam?
A scholarship scam involves fraud concerning scholarships for school and education. As the costs of education continue to increase, parents increasingly look to scholarship organizations to help them pay for their childrens college expenses. However, tens of millions of dollars are lost each year to scholarship scams. On November 5, 2000, Congress passed the College Scholarship Fraud Prevention Act which established stronger sentencing guidelines for such fraud. What Should I Look Out for? Scholarship scams typically use a number of slogans that are tell-tale warnings to the wary consumer. These include: – “We’ll do all the work” – You must usually fill out and apply for scholarships yourself. – “You cannot get this information any place else” – There are free scholarship listings from many public sources. – “You’ve been selected by [national organization] to receive a scholarship” or “You’ve won a scholarship from [national organization]” -Before sending out any fees, look into the na
