As part of our “Scholarship Scams: Red Flags” blog series, we are helping to break down the common “red flags” that can aid in alerting college students that a scholarship could be a potential scam. Though student loans make up a large portion of what may/will finance your college education, student loan alternatives like scholarships should always be a consideration, because its free money for your education!
Scholarship Red Flag #2
Do your Research!
Many scholarship organizations are legitimate, however where there is an opportunity to make money, there are those willing to scam. Just because a scholarship organization is not sounds official, doesn’t mean it is. Creating organizations that contain words like “national,” “foundation” or “federal” in the name is an easy way for scammers to gain trust.
Take extra time to research scholarship organizations that contact you by phone, and organizations offering deals that sound too good to be true. If you receive information from an organization saying you have won a contest that you never entered, it’s probably a scam. You have to apply for all legitimate scholarships; they are not awarded at random.
Lastly make sure the company sponsoring the scholarship has a website and a listed telephone number, legitimate scholarship organizations should typically have both. Also think about utilizing high school guidance counselors, and financial aid administrators as resources to run any potential scholarship opportunities by.
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