Watch out for Scholarship Scammers
It happens every year. High school seniors and their parents are defrauded by scholarship scammers; people who promise to help them land scholarships and financial aid they wouldn’t otherwise receive.
Estimates vary, but it seems likely that these crooks…and that is an appropriate word…collect in excess of $100 million annually from unsuspecting families.
Because college costs scare nearly all of us, and because many people do not realize that there is money available to help them send their children to college, these scammers have found it very easy to find and exploit their victims.
The first contact between the scammers and their potential victims is a letter offering expert advice and assistance.
The letters look good. The letterhead design, the font style, and other elements are calculated to give the appearance of an established, legitimate organization. And, that can be all it takes to fool families…to get them to take the next step on the path to being scammed.
The letters almost always begin by frightening families about the high cost of college.
But, the letter says, we can help. We can show you how to receive more financial aid. In some instances the letters will mention secrets colleges dont 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 and given to students who know the ropes.
The letters are not always the same, but one element is. They invite you to come to a hotel function room or other reasonably large venue to learn more about financial aid and scholarships, at no cost. Sounds like a no-brainer, right? If you think so, think again.
Ultimately, attendees are subject to a group sales pitch for the companys 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.
After the group presentation, families are invited to meet individually with staff members sometimes called counselors. In the world of sales, these folks are called “closers”…folks trained to close the sale. Their job is to get families to sign a contract and pay a fee of up to $2,000 before leaving. Unfortunately, they succeed all too often.
Every year, a new set of potential victims come along. But, you and your family can avoid these masters-of-rip-off by turning to the people who really do have your best interests at heart…school counselors and college financial aid professionals.
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