MADISON, Wis. (WMTV) – Many students are on the hunt for grants and scholarships to help fund their college education.
Because the June 30 federal FAFSA deadline has passed, students are looking for other financial options to help cover tuition costs, and scammers are taking advantage.
The Wisconsin Better Business Bureau receives numerous reports of scholarship scams every year.
The BBB is reminding students and parents to use caution when dealing with companies that offer financial aid opportunities.
Scammers typically hook victims with the promise of money, but the upfront “fees” they require never actually result in receiving financial aid. More recently, scammers are also claiming to help with student loan forgiveness.
Scammers typically claim to represent the government, a university or a nonprofit organization. They may use words like “National” and “Federal” to try to sound more official.
A scholarship or grant may be offered for a fee, even if you haven’t applied. Another version of the scam may involve offering a “guaranteed” scholarship if you apply and pay a fee.
After you pay the fee, you never receive the money, and it’s nearly impossible to get a refund because of all the conditions they put in place.
The BBB is offering these guidelines to help prevent students and parents from falling victim to scholarship scams:
- Apply for scholarships that don’t require an application fee. Many scholarships are generally free to apply. Use this…
