Beware of College Loan, Scholarship Scams

Hotel Voice — March 03, 2014

As Hotel Voice readers know all too well, college tuition keeps getting higher and higher. But you should also know that the cost of college is expensive enough without being conned by college loan and scholarship scams. Read the following and save yourself and your children from being victimized by these scams!

Many companies are advertising “guaranteed scholarships” for your college education. They tell you that for a fee they can locate scholarships for which you are already qualified. The reason why these promises sound too good to be true is because they are too good to be true. What these companies are charging you for is information that you can get for free from guidance counselors, the local library, the Internet or even Hotel Voice!

Here are some handy tips to help you beware of college loan and scholarship scam artists:

● Be wary of companies that come looking for you. The vast majority of college aid sources do not go looking for customers.

● Use the resources listed periodically in Hotel Voice to be sure that you are using legitimate scholarship and loan sources.

● Never give a company your credit card or account number. You might find one day that your credit card bill is huge or that your account has been emptied!

● Watch for these sales pitches: “The scholarship (or loan) is guaranteed or your money back!” “We do all the work!” “You’re a finalist!” “You have been selected by a national program (foundation, institute, etc.)!” “You can’t get this information anywhere else!”

Scams like these might not be so easy to spot, but there are safeguards. Never trust a company until you know more about them. Be wary of companies that contact you. Use the legitimate government, union and private resources for college grants and loans that are often listed in this publication.