Higher education is expensive, and scammers take advantage of that to trick students

QUINCY — For students struggling to pay for tuition, a sudden scholarship offer or a financial aid company that guarantees results can seem like a dream come true – but it could also be the setup for a scam.

Higher education is expensive, and scammers take advantage of that to trick students and their families. They pose as financial aid representatives from the government, a university or a nonprofit, sometimes using words like “national” or “federal” to sound more official.

The scammers’ goal is to get you to pay an up-front fee to find “guaranteed” scholarships or grants, or to have you fill out a fake application with sensitive personal information. Unfortunately, it’s likely you’ll get nothing in return.

Fraudulent companies may promise a money-back guarantee, but they also set conditions that make it impossible to get a refund. Legitimate companies can sometimes help you find scholarships, but they will not guarantee results.

It generally doesn’t cost money to find information about scholarships or apply. BBB, which awards a Student of Ethics scholarship for higher education, recommends free options such as speaking with a high school counselor or researching online.

How can I find real financial aid?

• Check for federal aid first. Students can fill out the Free Application for Federal Student Aid (FAFSA) and find other financial aid resources at studentaid.gov. This no-cost application is a good starting point for your search.
• Ask trusted sources. Discuss your options with your guidance counselor or financial aid office – they’re there to help you. They may recommend scholarships or free resources for finding aid. If you’re considering a paid service, ask them if they have experience with it.
• Do your research. Investigate any financial aid company you consider using. Check the company’s BBB Business Profile at BBB.org to find consumer reviews, ratings and other information that can tell you how the company operates.
• Get references. If you plan to use a paid service, ask for the names of families in your community who have used the service in the last year so you can discuss their experience.

How do I avoid scholarship scams?

• Beware of unsolicited offers. Be cautious of letters or emails saying you’ve been selected to receive a scholarship you never applied for. Ask how the organization got your name and contact information. Research the source before you click unfamiliar links or call numbers in these messages.
• Take your time. Don’t rush into paying for help at a seminar and be cautious if a company pressures you to buy immediately. There are lots of options for finding financial support, many of them free, so give yourself time to research.
• Ask questions. Be cautious if a company is reluctant to answer your questions about the service or the process. A reputable organization should be able and willing to answer questions.
• Get it in writing. Ask for information about fees and refund policies in writing. Keep in mind that dishonest comdobrien@quincybbb.orgpanies may refuse to provide refunds despite their stated policies.

What should I do if I find a scam?

• Report it. If you suspect a company of running a financial aid scam, report it to BBB Scam Tracker℠ to help other students like you.
• Make a recovery plan. It can be hard to know what to do after experiencing a scam, especially if you lost money. BBB’s Scam Survival Toolkit can help you make a recovery plan.

Don O’Brien is the regional director for the Quincy Better Business Bureau. Contact him at dobrien@quincybbb.org or 217-209-3972.