Tuition for traditional and online school programs can be more affordable with the help of college grants, scholarships and fellowships that don’t have to be repaid the way student loans do. You do, however, need to be beware of scams. The Federal Trade Commission in 2009 received nearly 840 consumer complaints about scholarship and grant programs, up from 177 complaints in 2008, according to a report published in Smart Money in April.
Free scholarship seminars and scholarship consultant visits might result in a company asking for as much as $2,000 for their services, the Smart Money report noted. One Arizona woman took up a federal stimulus grant money offer of $15,000, according to a March report from Phoenix-based ABC 15. The woman followed the offer’s instructions: cashing a $2,000 check that she received from a company and sending the company $2,100 that she thought covered taxes; but she never received the grant balance, and the $2,000 check provided to her bounced after her own money to the company cleared, ABC 15 suggested.
Following are five tips that students and parents seeking online college grants, scholarships and fellowships might want to consider so that they don’t fall victim to scams:
(1) Don’t participate in free grant offers that are unsolicited, and don’t spend money for “free” government grants, the Federal Trade Commission and ABC 15 reporter Joe Ducey caution. If you have not applied for a government grant (online or otherwise) and are told you’re receiving one, it’s a scam, according to information that’s been attributed to the Better Business Bureau. And you can stop telemarketing calls by registering your telephone number with the National Do Not Call Registry, the Trade Commission reminds.
(2) Don’t deposit checks when you aren’t familiar with who has provided them, and don’t wire money to anyone you don’t know, Ducey advises. Also, don’t give bank account information to a company you don’t know and when you don’t know why the information is needed, the Federal Trade Commission notes.
(3) Don’t listen to fake promises. There are legitimate companies out there touting that they can provide students with scholarship lists in exchange for advance fees, the Trade Commission notes. There are also companies that charge advance fees to take student profiles and compare them with potential scholarship opportunities, the Trade Commission reports. But legitimate companies never guarantee or promise scholarships or grants for online college and traditional college pursuits, the agency suggests. You might conduct an Internet search on unsolicited grant offers, Ducey says. And you might also make sure the names of government agencies are correct, the Trade Commission advises.
(4) Do research grants online and at the library and talk with financial aid representatives and guidance counselors. Many online college grants, scholarships and fellowships available from schools, large companies, non-profit organizations and government agencies don’t require application fees. By completing a Free Application for Federal Student Aid (FAFSA), available on the US Department of Education Web site, applicants receive information about the types of government financial aid, including low-interest student loans, for which they might be eligible. And a Web site that the Federal Trade Commission says is the only official access point for federal grant-making agencies in general includes an online database. The government itself doesn’t contact anyone to offer money, as per Better Business Bureau information on the database Web site. And the database Web site reports that it doesn’t ask for social security numbers, banking or credit card information; nor does it share information, except with regard to government agencies that can offer assistance.
(5) Do your own investigative homework. Attending a financial aid seminar? If so, the Federal Trade Commission recommends that you investigate any organization that you might pay for assistance and that you be leery of testimonials. Instead, ask the company to provide you with three referrals and ask those referrals about their satisfaction, and ask the company itself about costs, services and refund policy, the Trade Commission suggests. The agency adds that you should be cautious of seminar representatives who evade or are reluctant to answer questions. And, even after getting costs, services and refund policy in writing, you might want to consider that you may never recoup money from some operators, the Trade Commission suggests.
There are few things more frustrating than needing money to take classes on campus or at ancolleges online and then finding out someone has scammed you. Searching for your college grants will turn up both legitimate and fake resources and you will need to use some common sense and do some research to make sure you’re making the right choices. If you are looking at starting school and are interested in getting more information about your scholarships, check the internet.