Scholarship Scams

Some unscrupulous companies guarantee that they can get scholarships on behalf of students or award them "scholarships" in exchange for an advance fee. Some offer a "money back guarantee"- but attach conditions that make it impossible to get the refund.

Others provide nothing for the student's advance fee - not even a list of potential sources. Some go as far as to tell students they've been selected as "finalists" for awards that require an up-front fee.

Sometimes, these companies / persons ask for a student's checking account to "confirm eligibility," then debit the account without the student's consent. Other companies quote only a relatively small "monthly" or "weekly" fee and then ask for authorization to debit your checking account - for an undetermined length of time.

The CAC cautions students to look for these telltale lines:

• "The scholarship is guaranteed or your money back."
  No one can guarantee that they'll get you a grant or scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing.  "You can't get this information anywhere else." There are many free lists of scholarships. Check with your school or library before you decide to pay someone to do the work for you.
  
• "I just need your credit card or bank account number to hold this scholarship."
  Don't give out your credit card or bank account number on the phone without getting information in writing. It may be a set-up for an unauthorized withdrawal.
  
• "We'll do all the work."
  Don't be fooled. There's no way around it. You must apply for scholarships or grants yourself.
  
• "The scholarship will cost some money."
  Don't pay anyone who claims to be "holding" a scholarship or grant
  for you. 'Free money' shouldn't cost a thing.
  
• "You've been selected" by a "national foundation" to receive a scholarship - or "You're a finalist" in a contest you never entered.
  Need we say more? If you never entered then it cannot be possible that you've won this award.

If you attend a seminar on financial aid or scholarships, follow these steps:

• Take your time. Don't be rushed into paying at the seminar. Avoid high-pressure sales pitches that require you to pay now or risk losing out on the opportunity.
  
• Investigate the organization you're considering to pay for help. Talk to a guidance counselor or previous scholarship awardees before spending your money. You may be able to get the same help for free.
  
• Be wary of "success stories" or testimonials of extraordinary success. The seminar operation may have paid persons to give glowing stories. Instead, ask for a list of at least three local families who've used the services in the last year. Ask each if they're satisfied with the services received.
  
• Be cautious about paying seminar representatives who are reluctant to answer questions or who give evasive answers to your questions. Legitimate business people are more than willing to give you information about their service.
  
• Ask how much money is charged for the service, the services that will be performed and the company's refund policy. Get this information in writing. Keep in mind that you may never recoup the money you give to an unscrupulous operator, despite stated refund policies.
  

Many companies advertise that they can get students access to lists of scholarships in exchange for an advance fee. Other services charge an advance fee to compare a student's profile with a database of scholarship opportunities and provide a list of awards for which a student may qualify. The difference is: Legitimate companies never guarantee or promise scholarships or grants.

Although no case has ever been brought about a Jamaican organization, students using the web to conduct researches on scholarships and/or grants should be extra cautious, as they are most likely to fall prey to these unscrupulous persons.