From the Kansas City Star –
Generally, be wary of scholarship pitches that involve application fees, scholarship matching services that guarantee success and sales pitches that are disguised as financial aid seminars, said Mark Kantrowitz, publisher of FinAid ( http://www.finaid.org).
Kantrowitz said he’s been seeing more loan scams that involve advance fee payments. The lure is an unusually low-interest educational loan, with the requirement that you pay a fee to receive the funding.
Of course, after you pay, the loan never materializes. Legitimate loans, on the other hand, deduct the fees from the disbursement checks.
Here are three variations of tuition scams to watch for, according to FinAid:
•Scholarships for profit: This type of fake program draws thousands of applications for scholarships and charges fees of $5 to $35 for processing. The promoters actually pay out a scholarship or two and take a hefty profit on the rest of the money. Your odds of winning the lottery are better.
•Eye on the prize: In this case, you’re notified that you’ve won a scholarship worth thousands of dollars, but you’re required to pay a disbursement fee or the taxes before the prize is released.
•The match game: Be wary of scholarship matching services that guarantee you’ll win money or they’ll return your funds.
I thought I would pass it along. Are the scammers increasing in number or is it just in reach? Are there not so many, but with computers and modern communications they can run many more scams simulaneously?
I don’t know. Maybe some of both.
Whenever you are in trouble and, right then, right there, on television or on the computer or on a roadside sign, the miraculous answer appears, it probably isn’t the answer. I am very sorry to have to tell you that.
It’s not as if the world wasn’t cruel enough.