Scam of the day – August 7, 2012 – Scholarship scam

With the cost of higher education reaching unprecedented levels, college students are looking for whatever financial assistance they can get and of course, scam artists, the only criminals we refer to as artists are there to answer their call.  It has been estimated that 350,000 students and their families are victimized by phony scholarship scams each year.  One of the most prominent scholarship scams involve scholarship offers that you receive that require you to file an application along with an administrative fee.  Often the scholarship offer guarantees a refund of your fee if you do not receive the scholarship.

TIPS

Why would you trust the guarantee of a scammer?  Legitimate scholarships do not require the payment of administrative fees.  Never pay an up front fee for any scholarship.  Additionally, beware of administrative fees that are required as a part of a low interest loan even if the fee is guaranteed again to be returned if you do not get the loan.  It is a scam.  Legitimate loan companies do not charge advance fees.