Beware of Scholarship Scams
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.
If you’d guess that such scammers bilk families out of $100 million a year or more, you would be correct.
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 generally start by appealing to fearby talking 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.
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.
Its sad. And, it happens every year. Dont let it happen to you. Get all of your financial aid advice from your school counselor, college financial aid office, and reputable publications and websites.
Tags: Scams
