Scholarship Scams

There are a lot of different scholarship scams out there. Here are 2 of the most common that we’ve seen.

The Advance-Fee Loan.
This type of scam offers you the chance to receive an unusually low-interest loan, as long as you pay their required fee. They promise you that once you pay the fee, the loan never materializes. In truth, real educational loans deduct the fees from the disbursement check. They will never require you to pay an up-front fee when you submit the application. If the loan you receive is not issued by a bank or a lender, then in all likelihood it’s a scam.

Free Seminar.
If you ever receive something in the mail advertising a free financial aid seminar then we advise you be wary. While some seminars do provide you with  some useful information, others will often cleverly disguise sales pitches for financial aid consulting services which they claim will maximize your eligibility for financial aid.