Scholarship Service Warnings
The federal government pays billions of dollars each year in student aid. The FAFSA aid application is free though. Do not pay anyone to help you complete the form. The paper FAFSA form is available at any college financial aid office or from a high school guidance counselor office. Families can complete the FAFSA quickest though for free on the Internet by going to http://www.fafsa.ed.gov.
Yet a number of companies advertise that they can help students complete the FAFSA better to get aid and scholarship money, for a fee. The Better Business Bureau advises families to be cautious about any unsolicited offers from scholarship services that require application fees, since these organizations often cannot make good on their promises.
For advance fees ranging up over $1,200.00, some scholarship firms claim to award thousands of dollars in scholarships and grants or to match students with sources of funding, regardless of qualifications or need. Some companies even "guarantee" grants and scholarships or they refund your fees back.
In exchange for their fees, students may receive lists of possible scholarship sources. However, most of the companies do not assist students in obtaining the listed scholarships. Consumers complain that after paying the fee and supplying the necessary information, they never hear from the organization again or are unable to obtain refunds. Others allege that the information they were sent arrived too late to meet application deadlines or did not match the students' qualifications.
To avoid losing money when you can least afford it; seek out information from reputable sources. Many services advertised in these fraudulent mailings are available free of charge through high school counseling offices, college financial aid offices, or public libraries. Some schools offer on-line computer software programs for financial aid. Consider all available options, including federal, state, and local aid programs, financial institutions' loan plans, and scholarships, fellowships, or other programs offered by colleges themselves.
Also some very good free information is available on the Internet at the federal government site http://www.ed.gov/finaid.html and at free private scholarship search databases like those available on our scholarship search link page.
Many private organizations, foundations, professional clubs, and churches also provide legitimate scholarships to students. Qualifying factors may include community activities, membership in organizations, and special talents or skills.
If you are interested in using a scholarship service that requires a fee, investigate the background of any unknown company by calling the Better Business Bureau for a reliability report. Ask the company to put all details of its services and promises in writing, including the refund policy. Be suspicious of any "guaranteed" offers. Request the names and addresses of past scholarship recipients and ask those references about their experience and satisfaction with the company.