ALABAMA A&M and AUBURN UNIVERSITIES

For more information,
contact Donna Reynolds, Extension Assistant Editor

BEWARE OF SCHOLARSHIP SERVICES FRAUD

AUBURN, JAN. 29---There are no guarantees when it comes to scholarships. Do your homework before you spend lots of money on a scholarship search.

Many legitimate companies advertise they can get students access to lists of scholarships in exchange for an advance fee ranging from $10 to $400. Other legitimate companies charge an advance fee to compare a student's profile with a database of ~scholarship opportunities and provide a list of awards for which the student may qualify. They don't guarantee or promise scholarships or grants, says Dr. Fred Waddell, Extension family resource management specialist with the Alabama Cooperative Extension System.

Some scholarship search services misrepresent their services by guaranteeing they can obtain scholarships on behalf of students or actually award scholarships to students for an advance fee. In these cases, consumers receive only a list of scholarships or grants for which they can apply. Usually, all consumers receive the same list, regardless of their qualifications. The search companies that offer a "money back guarantee" require students to apply for each scholarship or grant they have listed and then offer proof they've been denied by each one.

Other fraudulent companies provide nothing for the student's advance fee -- not even a list of sources, says Waddell. Otherstell students they've been selected as "finalists" for awards that require fees first. Most of these scams ask for the student's checking account to confirm eligibility for an award, and then debit the account for large fees.

For more information on scholarship service fraud, contact the National Fraud Information Center toll-free (800)876-7060.