How to Report Scholarship Scams

WASHINGTON, DC -- While high school students wait for college acceptance letters, parents are searching for scholarships to help pay for tuition, books and board.

But scammers are also geared up and ready to pounce. So to steer families away from bogus money claims to help pay for their college-bound child's education, here's what you need to avoid.

When it comes to scholarship scams, a big red flag, anyone who asks you to give them money in order to get you money.

"Anyone who's asking you for money to fill out forms or to match you with a scholarship or aid, chances are it's a scam," says Motley Foll Consumer Finance Columnist Dayna Yochim.

Most students will start their search on the internet. And many scams involve websites that look legit with words like "foundation" or "government" all over, but ask you to pay money upfront for access to scholarships that you can find for free.

Another popular scam, letters or emails that say your child has been selected for a "special seminar or workshop" where financial aid forms will be filled out for you for a fee.

Yochim says, "They'll fill out an application that's free for you to do anyway. They'll try to pitch you, you're invited to this seminar. And, they're trying to pitch you for another product, say to sell you insurance or some sort of investment product."

Remember there are plenty of free resources to help you with the search including your child's high school. It's a process you'll want to start early.

"Start the search even before you have the acceptance letter. You want to be on the ball with this," Yochim says.

Many of these scholarship scams violate state and federal laws. If you suspect that an offer for aid is really a scam take action.

Start by bringing all of your documents and
literature to your child's counselor.

Then start writing. You want to write a letter to the
National Fraud Information Center.

How To Report Scholarship Scams

You can fill out a complaint form with the
Federal Trade Commission.

And, you may also want to reach out
to your state Attorney General's office
and the the Better Business Bureau.

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