What scammers seem to offer
As with many types of scams, you may receive an email or social media message informing you of an “opportunity.” Such messages may look like a personalized offer, saying that you’ve been selected for a particular scholarship or financial aid offer. It may invite you to call back, or even attend an in person workshop or seminar. If you call back or attend the event, you’ll be subject to a sales pitch pressuring you to pay for their services immediately or risk losing out on an opportunity.
Types of scams
Financial aid scams
Some scammers claim to offer you eligibility for financial aid, including grants, loans, work-study, and other types of aid. They claim that if you pay their processing fee, they’ll take care of all the paperwork for these “programs.” All they really do is complete the Free Application for Federal Student Aid (FAFSA) on your behalf. But, as the FAFSA is FREE to complete, you’re better off reaching out to the Financial Aid Office for help getting it submitted. It’s the only application used by UW-Madison to determine your eligibility for financial aid.
Scholarship scams
Scammers may try to convince you that you’ve qualified for a scholarship, but ask you to pay a processing fee, redemption fee or some other upfront payment. They might also ask for a credit card or bank account number to “confirm eligibility” or to hold the scholarship for you. They may even offer a money back guarantee, but subject to conditions that make it impossible to get a refund.
How to recognize a scam
When it comes to email, scams are recognizable by many of the same hallmarks as phishing emails. See our previous article, “How to recognize and report phishing.”
Financial aid scams can also be recognized by the following typical phrases:
- “The scholarship is guaranteed or your money back.”
- “You can’t get this information anywhere else.”
- “I just need your credit card or bank account number to hold this scholarship.”
- “We’ll do all the work. You just pay a processing fee.”
- “The scholarship will cost some money.”
- “You’re a finalist [for a contest you never entered].”
If someone advertises an offer with any of these phrases, or a variation, you should assume it’s a scam.
You can also ask your high school counselor or your financial aid office whether they’ve heard of the organization and know it’s legitimate.
How to find legitimate financial aid
- Fill out the FAFSA.
- Only you and your family should complete your FAFSA.
- The FAFSA is always free to fill out and submit.
- Never share your FSA ID (the username and password that you use to apply for the FAFSA) with anyone.
- Apply for UW-Madison scholarships through the Wisconsin Scholarship Hub (WiSH)
- Contact the Office of Student Financial Aid with any questions you may have or for assistance getting the FAFSA submitted.
What to do if you paid a scammer
If you’ve paid a scammer the sooner you act, the better. Learn more about how to get your money back.
How to report scams
Report financial aid and scholarship scams to the FTC at ReportFraud.ftc.gov and the Wisconsin Department of Justice.
Summary: Do’s and Don’ts
Do:
- Fill out the free FAFSA form to apply for financial aid
- Apply for UW-Madison scholarships through the Wisconsin Scholarship Hub (WiSH)
- Contact the Office of Student Financial Aid
- Report any scammers you encounter
Don’t
- Pay anyone to fill out or process your FAFSA; assume that anyone offering to do so for pay is a scammer.
- Pay anything to search or apply for scholarships.
Source:
https://www.consumer.ftc.gov/articles/how-avoid-scholarship-and-financial-aid-scams