It happens annually. Students and their families are cheated by scholarship scammers…people who promise to help them land scholarships and financial aid they wouldn’t otherwise receive.

It is widely believed that these scammers defraud families out of more than $100 million dollars every academic year.

Scholarship scam artists victimize families by playing into their concern about meeting the rising costs of college for their children. Many such families have not been through the financial aid process before and are seeking help and assurance. The scammers offer these worried families lots of assurances and false promises, only to defraud them in the end.

The con begins with a letter from a company with a name that makes it appear to be a counseling organization dedicated to assisting students. Of course, the company has no interest in helping anyone.

The letter often looks like it comes from a top college or university. That is not an accident. The font, the grade of paper, and the logo are chosen by the scammers to give the letter an “academic” look. It’s junk mail alright, and its far more malicious than most, but that’s not what it looks like. As a result, instead of throwing the letter away, many families open it. That’s mistake number one.

The letters almost always start by appealing to fear by talking about the high cost of college.

But, the letter says, we can help you get the financial aid you will need. We can teach you how to receive more financial aid than you would ever get on your own. In some instances, the letters will mention “secrets” colleges don’t want you to know. Sometimes the letters will talk about millions of dollars in unused scholarships and financial aid; money just waiting to be found by students who know the ropes.

What all the letters have in common is that they invite families to a free “seminar”, often at a local hotel. Because the letter offers the hope of extra financial aid, and because the evening is free, many families accept the invitation. That’s mistake number two.

Ultimately, attendees are subject to a group sales pitch for the company’s services. The pitches are not exactly the same, but all promise that their services will result in students receiving more money for college. And, none tell you that everything they offer is either unnecessary or can be gotten elsewhere at no cost.

The group pitch is followed by individual meetings with people who are referred to in the sales profession as “one call closers”. Although they may call themselves counselors, they are anything but. Their job is to pressure families into immediately writing checks that may exceed $1,000 for an essentially worthless set of services…and they are all too good at their job.

There is a very simple way to avoid falling victim to financial aid scammers. Just get all of your financial aid advice from high school counselors, college counselors, and reputable websites and publications.

Avoid being scammed. Do not ever, under any circumstances, pay for financial aid or scholarship advice or assistance.

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