Is this scholarship a scam?
Welcome to Finance Friday! On Fridays, I’ll share some scholarship and financial aid tips. We’ll cover how to apply for scholarships, how FAFSA works, how to create a college student budget, and much more. To kick off our first blog, we’ll talk about something that everyone who applies for scholarships has encountered: scam scholarships.
There’s no doubt about it - there are tons of scholarships out there. So many, in fact, that there are whole websites to searching for scholarships. My favorite tool is the CareerOneStop portal hosted by the federal Department of Labor. But not every scholarship portal - or scholarship - is created equal. Not every scholarship search tool properly vets all the scholarships they list, so you need to take the scholarships you consider applying to with a grain of salt. Some individuals or groups will try to take advantage of students looking for financial aid opportunities by posting fake scholarship applications. These scholarships are set up to take personal information (or even money) from unsuspecting students trying to make college more affordable.
How do you actually know if a scholarship is a scam or not? Let’s discuss a few key points that legitimate scholarship opportunities will (and will not) have. As a general rule, legitimate scholarships:
Look for rigor. Legitimate scholarship opportunities look for the most competitive applicants to award funding to. They’ll ask you to write essays or solicit recommendation letters to highlight your accomplishments and point out why you should be selected to win this scholarship. They might also have a GPA requirement, or ask that you demonstrate experience in leadership or service.
Double check your academic record. Legitimate scholarships will probably ask for your SAT or ACT scores, or your GPA, to verify that you are a competitive student. Sometimes they may ask for copies of your transcripts. This is pretty routine, but double check that you don’t share any personal information - like a social security number - via your transcripts!
Are very selective. Most scholarship opportunities are available for a limited number of applicants, and they’re only offered a few times a year (if not just offered once a year). Be wary of scholarships that advertise they award scholarships to every or most applicant(s). Legitimate scholarships are designed to select the most competitive students, which would be a small percentage of the entire applicant pool.
So now you know how to identify legitimate scholarships, but what are the red flags that a scholarship may be a scam? In general, scam scholarships:
Want you to pay THEM. The whole point of a scholarship is that you are being rewarded for your hard work and merit! You should never pay someone to apply for or receive a scholarship. If a scholarship opportunity asks you to pay an application fee or says that they need funding so they can process your award, then you should run far, far away!
Ask for personal information. It’s pretty standard that you’ll have to share some information like an email or mailing address when you apply for scholarships. However, legitimate scholarships will never ask you for information like your bank account number or social security number. Scams ask for that information in attempts to steal your identify and personal information so they can take your money. (General rule: FAFSA is the only financial aid portal where you should share your social security number.)
Force you to act fast. Deadlines are a fact of life, and you should pay close attention to when scholarships are due. However, if a scholarship opportunity is forcing you to act quickly, you should pause and make sure that it is legitimate. Scammers will often create a false sense of urgency so they can trick you into submitting personal information without realizing what you’ve done. There’s a difference between a deadline and a false sense of urgency.
Say they are part of the government. Some groups will try to establish their legitimacy by falsely claiming they are endorsed or supported by groups like the Department of Education. And while the Department of Ed does provide financial aid to students attending college, those are administered by your state governments and your college(s). Private groups claiming they are endorsed with the government are trying to look legitimate so they can gain your trust.
Look fake. Many fake scholarship opportunities will have misspellings, grammatical errors, and will be hesitant to share their contact information. If you can’t find a way to contact the people in charge of the scholarship, you should be wary of its legitimacy.
It’s never wrong to ask for help if you aren’t sure of a scholarship’s legitimacy. If you’re in college, you can never go wrong asking your financial aid office for guidance. If you’re in high school, don’t hesitate to get your guidance counselor’s or college advisor’s opinions on the legitimacy of a scholarship. And if you use a private consultant that you trust, you can always ask their opinion.
College is expensive, and the drive to find funding to help pay for it should be applauded! You should work hard to find scholarships that can help you achieve your goals. But be patient, take care, and double check what you are applying for. There are tons of scholarships out there, but there are also tons of scammers waiting to take advantage of unsuspecting students. Keep an eye out and be cautious as you navigate your scholarship application journey!
Need help with the college process? Simpson Education Consulting can help you navigate the college process, find your dream school, and make college affordable! Reach out to our team if you need help!
