finding. applying. winning
Scholarships

scholarship fraud

Beware of individuals and companies that promise and guarantee to get you free scholarship money.

Each year, thousands of parents of high school students get post cards and flyers through the mail which invite them to come into an office for free information about getting scholarships. It all sounds great and too good to be true.

One calls and makes an appointment to meet at the office. Once there, parents and students immediately receive a high pressure sales presentation which promises that, for a minimal filing or registration fee (which can actually run between $100 to $300 or even more) the company will fill out all the scholarship application for the students. Salespersons also say that they can guarantee the family thousands of dollars of free scholarships or will give their money back.

Please remember that NO ONE can guarantee anyone a scholarship, no matter how much you pay.

Around this time of year, thousands of small, illegal businesses appear, seemingly overnight, and begin to advertise through mail, newspapers and now even through radio. Unfortunately, newspaper and radio stations do not normally check whether the advertiser has a business license, if they have been in business for a long time, or even if they are legitimate.

The scam approach of these overnight and temporary scholarship-finding businesses is to get as many persons as possible to pay them an “application completion fee”, and then abandon the business location and disappear as quickly as possible. For them to be successful in stealing client’s money, these companies will put a lot of pressure on the parents and students to pay them the fee immediately and in that first meeting. They are willing to say anything and promise everything just to get the money at that very moment. They rush to get the money, but they don’t rush persons to come back too soon for the promised completed application, which they often say will be taken care of but requires a waiting period.

One of their favorite strategies for fooling and rushing people to give them the money is to say that they just learned about a wonderful and large scholarship, and are certain the client would qualify for the deadline (which is usually just “a day or two away”), but that the client needs to act very fast or supposedly the opportunity will be lost.

These illegal and fraudulent scholarship location businesses will say and promise almost anything to potential clients, since in any case they plan to disappear in a week of so and ultimately steal all of the client’s money.

Be extra careful if, to cover their fee, they ask for your credit card number: they can use your credit card number to charge other things immediately as well.

How can you protect yourself, and determine if you are dealing with a legitimate company that can really help you find and apply for scholarships?

1. Ask a lot of questions about them and determine how long the company has been in business. Check with the city’s business licensing bureau and ask if that particular business is filed with them. If the city where they are doing business in has no records, then keep in mind that this company is probably illegitimate and out to steal your money.

2. Ask business owners in the neighborhood if they know how long the business you are dealing with has been there. If no one knows anything about them, be very suspicious about doing business with them; don’t give them your money.

3. Ask the scholarship-finding business owners if they can provide printed information about their business, and let them know that you need time to research and review those materials carefully. These businesses work so fast to get people’s money before they disappear that they normally have nothing to offer you, nor are they interested in giving you time to think it over. It is your money and no one has the right to rush you to give it away .

4. Ask for references to other business owners in the community that would serve as background references to this company. Be careful not to receive a phone number of another business that you have also never heard about. They could be giving you a number of another location that is also working in partnership with them to possibly also steal money from other parents and students in another neighborhood.

5. Inform them that you are only willing to pay a fee after they have completed the scholarship forms and given them over to you. Avoid doing business with scholarship finding businesses or companies that want all their money first and haven’t done anything for it.

If you come in contact with these potential con artists, say nothing to them; leave the location as soon as possible and proceed to call your local police department immediately. You can also contact us and let us know about the organization that contacted you, and we can also check their business background. Call us toll free at 877-612-5722 or e-mail me directly at LSACNational02@hotmail.com