Overview
What it is
Wherever there's money for college, scammers follow. Scholarship and financial-aid scams try to charge fees, steal personal information, or collect on “prizes” you never applied for. The single best defense: remember that legitimate scholarships are always free, and so is the FAFSA. If someone asks you to pay, walk away.
How It Works
How it works
Scams take a few common forms: fee-based “scholarship searches” or application fees, “guaranteed” scholarships for a price, fake “you've won” notices for awards you never entered, and phishing for your Social Security number or bank details to “claim” or “process” a prize. Some pose as official aid services and charge to file your FAFSA (which is free).
Key Terms
Terms to know
- Advance-fee scamPaying money up front to get a scholarship or grant that never comes
- PhishingFake messages that steal your personal or financial info
- FAFSA imposterA paid service pretending you must pay to file the (free) FAFSA
Tips
Tips to maximize it
- Never pay to apply or searchReal scholarships and databases are free
- Be suspicious of 'guarantees'No one can guarantee you'll win a scholarship
- Ignore 'you've won' for awards you didn't enterA classic scam hook
- Never give SSN or bank info to 'claim' a prizeLegit awards don't need it up front
- File the FAFSA only at studentaid.govNever pay a third party to file it
- Verify the sponsorCheck the organization independently before sharing anything
Avoid
Common mistakes to avoid
- Paying a 'finder' or 'processing' feeA guaranteed red flag
- Sharing financial details to unlock a prizeNever necessary for a real scholarship
- Trusting urgency and pressureScammers rush you so you won't think
- Using a paid FAFSA serviceThe FAFSA is free
FAQ
Frequently asked questions
- Should I ever pay for a scholarship?No — legitimate scholarships and searches are always free.
- Is a 'guaranteed scholarship' real?No — that's a red flag for a scam.
- Someone says I won a scholarship I didn't apply for — real?Almost certainly a scam; don't share any information.
- Is the FAFSA free?Yes — always file at studentaid.gov; never pay.
- Where do I report a scam?The Federal Trade Commission at reportfraud.ftc.gov.
At a Glance
Key facts
- Rule #1Never pay to apply or to search
- Red flags“Guaranteed” awards, “you've won” surprises, upfront fees
- Never shareSSN or bank info to “claim” a prize
- FAFSAAlways free at studentaid.gov
- ReportTo the FTC (reportfraud.ftc.gov)
Official Sources
Where to learn more
Learn the warning signs and report fraud: