Bogus scholarships threaten students

Sebastian Scalera

High School is a time of searching for opportunity and it's undeniable that there's plenty of it our there for students of all academic abilities and areas. Today's careers require a certain amount of schooling, which is just as undeniably expensive.

Not surprisingly, students and their parents are on the lookout for every chance at a scholarship or resume bullet point. And, just as naturally, greedy people take advantage of parents' and students' intensive search for an affordable education.

It's practically guaranteed that each high school student, or someone he or she knows, has fallen victim to or been confronted with a scholarship scam or honor society scheme. Victims of scholarship scams lose more than $100 million annually. That's enough money to send over 1600 students through an Ivy League University.

"It's comical how they try to flatter you," said junior Hannah Reynolds, an avid member of many clubs and orga nizations. "Certainly there are some amazing people who offer remarkable opportunities to help kids get a higher education whether it be through clubs or tests. There are some major red flags that I've learned to look out for, however, when it comes to scholarship scams."

Most second semester juniors probably have taken or plan to take the SAT or ACT test. They're getting emails, texts and messages from scholarship agencies and honor societies like never before. So who's trying to put these students through college and who's trying to sell them a $45 bumper sticker? Here are some need-to-know tips on deciding the difference between the two.

The Federal Trade Commission (FTC) cautions students to look and listen for these tell-tale lines of potential fraud:

"The scholarship is guaranteed or your money back."

"You can't get this information anywhere else."

"I just need your credit card or bank account number to hold this sch olarship."

"We'll do all the work. You just pay a processing fee."

"The scholarship will cost some money."

"You've been selected" by a "national foundation" to receive a scholarship – or "You're a finalist" in a contest you never entered.

If the framing of a "scholarship agency's" letter is comparable to that of an infomercial, it's illegitimate. As much as people like to believe they're all Harvard Law's next greatest litigators, it's important to utilize some critical thinking skills. This brings us to their next bag of tricks, flattery.

Real honor societies like the National Honor Society (NHS) or scholarship agencies like Florida Bright Futures don't email potential recipients with the title "Congrats! You won! click here to claim YOUR education!" Even many scammers might not be so be so flagrant as to ask for a monthly fee for a certificate and an honor society pen while state school admissio ns officers chuckle at your application. It's more typical than you think.

These scam artists are like shapeshifters. They're not just in your mailbox, they're also at seminars. Events like seminars and college fairs can be a great method of gaining information for college. Here are a few more tips from the FTC on how to look out for scams.

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If you attend a seminar on financial aid or scholarships, follow these steps:

Take your time. Don't be rushed into paying at the seminar. Avoid high-pressure sales pitches that require you to buy now or risk losing out on the opportunity. Solid opportunities are not sold through nerve-racking tactics.

Investigate the organization you're considering paying for help. Talk to a guidance counselor or financial aid advisor before spending your money. You may be able to get the same help for free.

Be wary of "success stories" or testimonials of extraordinary success – the seminar operation may have paid "shills" to give glowing stories. Instead, ask for a list of at least three local families who've used the services in the last year. Ask each if they're satisfied with the products and services received.

Be cautious about purchasing from seminar representatives who are reluctant to answer questions or who give evasive answers to your ques tions. Legitimate business people are more than willing to give you information about their service.

Ask how much money is charged for the service, the services that will be performed and the company's refund policy. Get this information in writing. Keep in mind that you may never recoup the money you give to an unscrupulous operator, despite stated refund policies.

Check out StudentAid.gov, the U.S. Department of Education's site for credible info on funding your education beyond high school.

Finally, it can't hurt to see a few infamous real world examples of these scams.

"I had an email sent to me by this Coca Cola Company and they said I had won a contest, for prize money. I thought this was the same contest that I had entered before for Scholarship money; however, after I already completed the form and sent everything I looked up this company and found out that they were a scamming company looking to take the money of people they have sent that email to. Their email address iscocacolaclaims@gitaristan.com," said an anonymous scholarship seeker online.

Notice this attempt to exploit busy students who need help paying for college, "This is a uniquely sophisticated scam run by a graduate of UCLA trained in digital marketing & online marketing. This scam works by targeting busy college students using emails that congratulate them on acceptance into their Honor Society, but they must pay $50 to join."

Here's an article from The Houstonian talking about a bogus honors society.

The FTC strongly recommends students report any scams they encounter. Anyone who believes they are a victim should file a complaint with: The FTC or the state Attorney General.

Senior Michael Petruzzi said he's laughed about these fraudulent schemes, but the issue isn't really funny.

"As wittedly as we speak about it, it's actually quite sad that this is the reality," he said. "I perpetually endorse t his idea of raising awareness about these illegitimate 'societies'."

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