The College Scholarship Fraud Prevention Act of 2000 was passed to protect against fraud in student financial aid by establishing stricter sentencing guidelines for criminal financial aid fraud. According to the Federal Trade Commission, perpetrators of financial aid fraud often use the following lines to sell their scholarship services; students should avoid any scholarship service or website that says the following:
- “This scholarship is guaranteed or your money back.”
- “You can’t get this information anywhere else.”
- “I just need your credit card or bank account number to hold this scholarship.”
- “We’ll do all the work.”
- “This scholarship will cost some money.”
- “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist” in a contest you never entered.
The U.S. Department of Education notes that there is no need to any student to pay for college preparation or financial aid advice. High school counselors, college financial aid administrators and the Federal Student Aid Information Center all provide help for free. Visit studentaid.gov for information on avoiding student aid scams.
If you believe you’ve been the victim of scholarship fraud, wish to file a complaint, or want more information, call 1 (877) FTC-HELP or visit the Federal Trade Commission webpage.