In a earlier post I gave tips on how to spot scholarship scams. In this post I want you to be aware that there are businesses out there waiting to take advantage of students who wait until the last-minute to conduct their scholarship search or lack the motivation and the desire to do their own search. The businesses are legitimate but the key thing to look for is exorbitant fees.
There are scam artists out there in the scholarship world quite willing to separate you from your money. There are companies that send letters to students stating that because of their academics they are “eligible” to receive certain scholarships in addition to financing of loans. The letters are very complimentary of the student and make the parents feel proud that their child is being recognized. It is this source of pride that encourages the parent to show up at the appointed time. They are given a scheduled time to show up with at least one parent at a local hotel (1st warning sign). The company makes a bunch of promises for a fee of $1,000 or more. I’m amazed at the number of parents who go for this. They seem to target low income marginal students. Some parents go this route because they simply don’t know anything about the process of helping their student find money for college. This is one of my main reasons for this blog, to help parents navigate this process. Knowledge is power. Continue reading