Find Scholarships and Avoid Scams

COOKEVILLE, Tenn. (Aug. 16, 2002) -- Every year, scholarship scams cost several hundred thousand students and parents more than a total of $100 million, according to the Federal Trade Commission.

Scholarship scams possess common characteristics that parents and students should regard as warning signs when dealing with scholarship search services:

• "Guarantees" a scholarship -- Scholarships and grants are awarded on basis of performance or qualifications; no one can "guarantee" you'll get one;
  
• Wants credit card or bank account information to hold scholarship -- Never give credit card or bank information over the phone;
  
• Claims that "you've been selected" for a scholarship you never applied for -- Most of these offers require you pay a fee or the taxes before you claim a prize that usually doesn't materialize;
  
• Offers loan if you pay an advance fee -- Real educational loans deduct the fees from the disbursement check.

Tennessee Tech University financial aid director Ray Holbrook says professionals in his field suggest a student exhaust other avenues before turning to national scholarship searches. He advises checking with high school guidance counselors, colleges or universities a student is considering attending and community organizations.

Holbrook also suggests parents check with their employers; many companies offer scholarships to the children of employees. Parents affiliated with a service or social organizations should check to see if the organization offers national or local scholarships.

Students can check out TTU's financial aid web site for access to some sound and free national scholarship searches. For those links and others that help with college financial planning, go to www.tntech.edu/www/admin/finaid/.

--Karen Lykins

This information posted 19 August 2002