Scholarship Facts and Fiction

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:: Don't Be Confused About Finding Scholarships ::

Get the facts about scholarships, grants and financial aid.

For free, reliable information about scholarships and financial aid, contact a high school counselor or financial aid office at your local college or technology center.

Fiction	Fact
“We ‘guarantee’ we’ll find you a scholarship!”	No one can guarantee you’ll receive a scholarship. Scholarships are based on merit, talent and/or need. Read the fine print before signing anything!
“We’ll take care of all the paperwork for you!”	No one can actually apply for financial aid for you.
“We’re the only ones who have information about unknown scholarships!”	There are many free resources for financial aid information. Your school's financial aid office has information and links to legitimate resources.
“We need a credit card to ‘hold’ your scholarship!”	Never give out your credit card or bank account number.
“All we need is your checking account number, driver’s license and a credit card; we’ll do the rest!”	You bet they’ll do the rest! A legitimate organization only needs information such as hobbies, past grades or other demographic information.
“Free financial aid research at local hotel … results guaranteed!”	Try attending a seminar sponsored by your high school or a local college.
“You’re required to pay an up-front fee to get an educational loan.”	Fees are deducted from the proceeds of the loan. Don’t pay fees up front!
“Paying a fee will increase your eligibility for more loans and grant money. Millions of dollars go unclaimed each year!”	Financial aid eligibility is determined the same way for all students filling out the Free Application for Federal Student Aid (FAFSA). Most of the unclaimed dollars are employer-paid benefits which are unavailable to many students.

Additional tips for avoiding scams:

No processing fee is required to get grants from the Department of Education.
Never provide your bank account or credit card information over the phone unless you initiated the call and trust the company you’re calling.
More information about preventing financial aid scams is available at StudentAid.ed.gov/lsa (external link).

Been scammed? Need to report or file a compliant?

If you think you’ve already been scammed by a financial aid or scholarship search firm, here are some steps you can take.

Immediately contact your bank, explain the situation and request that the bank monitor or close the compromised account.
Report the fraud to the Department of Education's Office of Inspector General hotline at 800.MIS.USED (800.647.8733) or oig.hotline@ed.gov. The office investigates fraud involving federal education dollars.
Report the fraud using the Federal Trade Commission (FTC) (external link) Fraud Hotline at 877.FTC.HELP (877.382.4357).