Every year students and parents are defrauded by scholarship scams. The victims of these scams lose more than $100 million annually. Scam operations often imitate legitimate government agencies, grant-giving foundations, education lenders and scholarship matching services, using official-sounding names containing words like “National,” “Federal,” “Foundation,” or “Administration.”
In general, be wary of scholarships with an application fee, scholarship matching services that guarantee success, telephone offers of scholarships which “require” personal information (such as bank account number and social security number) to process, advance-fee loan scams, and sales pitches disguised as financial aid “seminars.”
Check out what the Federal Trade Commission has to say about scholarship scams.