Warning Signs
If you’ve been notified of the scholarship through an unsolicited email or an envelope stamped as “bulk” or “advertising,” chances are you’re dealing with a scam. Also be wary of foreign addresses or anything coming from a post office box.

Be sure to look into the company that’s offering you this supposed scholarship. If you’ve never heard of the organization, do a quick Google search (Stock Quote: GOOG) and see what comes up. The Better Business Bureau also keeps a list of suspect companies, so you can compare your experience with others.

If you’ve been forwarded to a website, make sure to click past the home page and read through the site. “It’s a clear indicator that’s it's a scam if the website has no content to speak of, but is asking you for personal information,” says Boyle.

Any organization asking for money upfront is also suspicious. “A legitimate scholarship does not charge an application fee or a processing fee,” says Rod Bugarin, a financial aid advisor at independent school counseling firm IvyWise.

And no organization can guarantee money: “A scholarship committee has different criteria as to how recipients are determined and it’s based on all these contingencies,” says Bugarin, “It’s like saying you guarantee a tax return. Everyone’s case is different and there’s no way you can guarantee a set amount.”

Of course most scams can be avoided simply by using your common sense. How can you be a finalist in a contest you never entered?

Lesson Learned
Experts say the vast majority of scholarships come through the financial aid office of the school the student has chosen to attend. Boyle says to look for scholarships labeled as “institutional aid.” That means the money is provided directly by the school.

In the end do your research before accepting any scholarship offers. “Any offer that sounds fishy should be approached with caution,” says Bugarin. And remember that “free money” should be exactly that: free.

 

 

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