Online-Degree-Scholarships Blog

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The College Scholarship Fraud Prevention Act

• With this act federal government showed its intention to make people aware about the scholarship scams, the methods used by fraudulent organizations to do scholarship scams and the ways to avoid these scams.
• United States Department of Education (ED) and the Federal Trade Commission (FTC) were empowered to spread awareness among the mass.
• ED and FTC were given more teeth to prosecute those companies which are indulged in scholarship scam activities.
• FTC is continuing with its effort to prosecute the fraudulent companies. It has launched a project called Project $cholar$cam poster and bookmark.
• FTC has printed posters and bookmarks to spread awareness against scholarship scams among students. These posters and bookmarks are distributed among the students.

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Many awareness programs are being run by the government and non-profit agencies but still students get robbed. Following may be the reasons to why students get trapped in the hands of fraudulent scholarship sponsors.

1. The sky rocketing price of higher studies and interest rate charged on student loans has compelled financially weak students to take shelter under scholarship providing companies. Needy students do everything to get scholarships so that they can fulfill their dream of higher studies.
2. There are numerous scholarships awarded each year in America . Each scholarship carries a deadline for filing application. Students have to search, select and apply for scholarships in a fix time frame. Fraudulent sponsors lure students of assured scholarships if they are willing to spend some dollars.
3. Many scholarships go unclaimed every year because students do not know about them. There are students, who can spend dollars to get these scholarships. Fraudulent sponsors take advantage of this scenario.

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The only way is to escape from being robbed at the hands of fraudulent scholarship sponsors is to have patience. Students should begin their search for scholarships as early as possible. Internet provides you the best to way to search for scholarships. It is wise to start searching for scholarships from local level. Always visit the official website if you are searching for a government sponsored scholarship. You can read books on scholarships in a library. Students, who have already got a scholarship, can tell you much better about where to search for scholarships. Students can take help of such organizations, which help in searching and applying for scholarships. These organizations take fees to give services. There is no harm to take their services but you must assure that they are not frauds. Remember, the organization that guarantees a scholarship is a fraud.

Each scholarship has different eligibilities and you cannot be eligible for everyone. Apply for only those scholarships, you can qualify for. It will save your money and time. Search for free scholarships before taking any help. There is abundance of free scholarships on internet. Always keep a photocopy of applied scholarship forms. Whenever you receive a mail that you have qualified for a scholarship, you can cross check whether you have applied for that scholarship or not.

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for big scholarships, matching the scholarships according to student’s eligibility and guaranteeing a scholarship. Masquerading scholarship sponsors use pressure tactics to inspire students. These sponsors organize seminars to hypnotize the students. Their efficient executives collect the money from students by playing a jingle bell.

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The best way to avoid getting robbed of your hard earned money is to search scholarships on your own. Although, it is not possible for a student to search and apply for all the scholarships available without taking any help. There are many scholarships, which go unclaimed every year. Moreover, a student cannot be eligible for each scholarship. It is wise to apply only for those scholarships, which come in the ambience of your eligibility. Now as a student, you have to do double task first to search the scholarships and second to select the appropriate one. There exist some companies, which help students in searching, matching and applying for scholarships. You can hire their services by paying their fees.

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This work load and visible help from some genuine organizations can make you an easy target for fraudulent companies. Filing scholarship application in deadline makes the matter worse and students start thinking to pay some dollars to those, who guarantee a scholarship.

Remember these points:

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• A student, how talented be may be, can never get a scholarship without applying. You must keep a photocopy of the scholarship applications you have applied for. When you will receive a phone call saying that you have got a scholarship then you can easily cross check whether you have applied for that scholarship.
• Scholarships are granted not guaranteed. No one can guarantee a scholarship. You have to prove your worth for a scholarship through your application.
• Why pay for scholarships when they are available free of cost on internet. You can search and apply on your own. It is very easy. Scholarship forms are published online. Students can fill and submit scholarship forms online without spending a penny.
• Never give up pressuring tactics such as buy now or missing the opportunity. You can never avail an opportunity without knowing its source.
• Take your eligibility into consideration to narrow down the search area before searching for scholarships. It is better to start searching form your local area.
• Establish the legitimacy of a company before hiring its services. Visiting official website, scrolling down the names of registered users and visiting the office personally are some of the methods used to establish legitimacy of a company.

Students know that they are being robbed but still they continue to entertain mails and phone calls from fake scholarship sponsors. It is proved by the complaints received by US Department of Education (ED) and Federal Trade Commission (FTC). Both the departments are assigned with the task of prosecuting fraudsters by the College Scholarship Fraud Prevention Act 2000. Scholarships are meant for students only. You should make no hurry in applying for scholarships. It is better not to get a scholarship rather than get robbed.

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ways to locate a scholarship. One can use search engines on internet, reading printed material in public library is another useful resource. Students can visit the office of probable scholarship sponsor for more information. In this exercise, you will meet some genuine and some fraudulent scholarship sponsors.

According to an estimate by Federal Trade Commission fraudulent trade practices have caused $22 million to 175,000 students. Taking note of the rising scholarship scams, Federal government passed the College Scholarship Fraud Prevention Act in year 2000. Under this act, US Department of Education (ED) and Federal Trade Commission (FTC) set up public awareness centers. FTC is continuing to prosecute the companies involve in scholarship scams.

Following are the names of companies listed as defendants on FTC web site:

1. Career Assistance Planning, Inc.
2. College Assistance Services, Inc.
3. Deco Consulting Services, Inc.
4. National Grant Foundation, Inc.
5. National Scholarship Foundation, Inc.
6. Christopher ebere nwaigwe and udoka maduka
7. Student Assistance Services, Inc., formerly known as Student Financial Services, Inc.
8. Student Aid Incorporated

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According to FTC unscrupulous companies guarantee scholarships to needy students. They use high pressure tactics such as buy now or risk losing out on the opportunity, we guarantee you will get it, I have got aid for you; give me your credit card or bank account number and millions of dollars in aid go unclaimed every year; do not you want some of that money to lure students. Most of the companies will give you a money back guarantee if you do not get the scholarship. These companies ask for upfront payment for their services.

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Criminals gain access to personal data of students to obtain credit cards, personal loan etc. FTC warns students against these companies. Scholarships are announced at their due dates. They carry a deadline. You cannot apply for a scholarship after the deadline is over. If you get such mails or phone calls then do not give answer to them. Giving your credit card number can be suicidal for anyone. Every year US Department of Education receives numerous complaints regarding scholarship scams.

Students must learn the ways to avoid scholarship scams. If you confront such company then check their reputation through Better Business Bureau, school guidance counselor or a state attorney general office.

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Students can ask some questions to establish the legitimacy of a company:

• You can ask them to tell you names of your local area residents, who have used their services.
• Ask for the data of students, who have got scholarships through them.
• Find out truth of their refund policy.

Students have to be careful if they do not want to get robbed before they get anything. Scholarships are granted free of cost. You need not to spend a penny for getting scholarships. It is the money provided as charity to needy students. Always visit official web site of the scholarship sponsor company. If you have any doubts then visit their office personally for more information.

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