| Scholarship Scams |  Printer-Friendly Format |
There are many organizations seeking to profit from students needing
financial assistance for college costs. Some of these organizations cross the line of legitimacy
and engage in what are commonly known as "scholarship scams."
The Federal
Trade Commission has outlined a number of telltale signs to help students be wary of such
scams. In addition, other organizations, while not considered scams, charge students and families
high fees for applying for financial aid when such services are often available elsewhere for
free.
For example, www.FAFSA.com is not the official federal
FAFSA website. It is a privately operated website that charges students fees to complete
their FAFSA online ($49.99 for renewal and $79.99 for new applications, and even higher fees
for automatic yearly filing). While organizations such www.FAFSA.com have the legal right to
charge for their application assistance services, it is important to be aware of free and
low-cost options for identical services. Individuals and families can ALWAYS file the FAFSA
free online at www.ed.gov.
TERI believes that students and families should not pay
fees for services that can otherwise be obtained for free. Education Advisors are available
at Centers to provide guidance free of charge for all aspects of securing financial aid,
including scholarship searches and filling out the FAFSA. If you have concerns about a
particular service, contact the TERI College Planning Center
or call (617) 536-0200.
More examples of services for a fee:
- www.fafsaonline.com: A FAFSA preparation site that offers professional services to review your FAFSA for $49.99. At TERI College Planning Centers, these same services are provided free of charge and in multiple languages.
- www.financialaidsupersite.com: This site offers warnings against scholarship scams while at the same time selling their own $397 financial aid consulting services!
- www.ednet.com: This is the website of the Educational Assistance Council that mails families "college aid applications" which look like official governmental or institutional forms and identifies the student as having "preferred student" status. Told that they qualify as fully "eligible" for aid, students are then given an urgent deadline to complete the aid application, which has a "required" processing fee of $39.95.