Increase in Scholarship Scams Stimulated by Recession
by Frank Burtnett, Ed.D., Author of the Bound-For-College Guidebook

School has been open for a few weeks and an old nemesis is reappearing online, via direct mail and in
various community venues across the nation---predators that are actually glad to see the growing number of families affected negatively by the current economic downturn and recession. Who are these villains? They are the individuals and firms that operate “scams” suggesting they have full proof solutions for those being forced to find new and innovative ways of paying for college. These scammers has grown so large in number and activity that the Federal Trade Commission (FTC) has had to issue regular consumer alerts and take legal action against those who are violating federal laws. To avoid becoming the victim of unscrupulous practices, Frank Burtnett, author of the Bound-For-College Guidebook (Rowman & Littlefield Education, 2009), offers this guidance to students and parents:

1. Don't pay for scholarship search services. A free search can be done online at www.fastweb.com.

2. Make certain the scholarship is being offered by a credible source. Some scammers have been
operating nothing more than a scholarship lottery by charging an application fee and then awarding a
handful of scholarships, keeping the larger cache generated by the application fees.

3. Stay away from products and services suggesting the scholarship search and application process is
easy. In reality, it is both energy and time consuming.

4. Don't believe outrageous claims and promises. If it sounds too good to be true, it probably is.

5. Be cautious of letterhead and logos that give the appearance that the message is coming from a
government agency. The primary US Department of Education financial aid website is www.fafsa.gov.

6. Be concerned when you see words like "guaranteed" when describing services or products.

Students and families must be good consumers as they look for scholarships and financial aid.
The school counselor, community or school librarian and the financial aid officer at the colleges under
consideration can be very valuable allies. Get to them early and often as the college search and
application process proceeds.
To aid students and parents in becoming good consumers, the FTC has created a web site with additional
information about financial aid and scholarship scams. Go to:
http://www.ftc.gov/bcp/edu/microsites/scholarship/index.shtml
______________________________________
Dr. Frank Burtnett is the President and Principal Consultant of Education Now, a consulting firm
in Springfield, Virginia, that concentrates on programs and services that help people achieve their career
and educational potential. Frank can be reached at fburtnett@ednow.org. Learn more about the Bound-
For-College Guidebook by visiting www.ednow.org and clicking on the book title at the top of the
homepage.
10/6/09