Scam-Proof Your Semester: Avoid Tuition & Aid Traps

Financial aid and FAFSA scams

One common scam targets students applying for financial aid through the Free Application for Federal Student Aid (FAFSA). Scammers pose as professionals who promise to complete these applications for a fee, guaranteeing better outcomes. However, this service is not only unnecessary, as FAFSA is free to file, but it also exposes students to potential identity theft. According to Sammi Nachtigal from the Federal Trade Commission (FTC), scammers might provide false information on the application, resulting in fines of up to $20,000 and even jail time.

To avoid this scam, students should complete their FAFSA forms independently or seek help directly from their school’s financial aid office. Never pay for FAFSA assistance or provide personal information to unsolicited contacts.

Scholarship and workshop scams

Another prevalent scam involves fake scholarships and workshops. Scammers may charge upfront fees for scholarship “pre-approvals” or promise guaranteed awards. Some even host high-pressure workshops that resemble timeshare meetings, where students and parents are pushed into paying for nonexistent scholarships.

Legitimate scholarships do not charge fees for application or approval. Students should research scholarships thoroughly, verify their legitimacy, and consult with their school’s financial aid office before paying fees.

Unpaid tuition scams

Scammers often call students, claiming their tuition is overdue and threatening immediate expulsion unless payment is made. These calls can be alarming, but it’s essential to recognize that legitimate universities do not operate this way. They do not demand payments over the phone or threaten students with immediate class removal.

If you receive a call like this, resist the pressure to act quickly. Verify the claim by visiting your school’s official billing portal or contacting the financial aid office using a known phone number. Never provide personal or financial information to unsolicited callers, especially if they demand payment through unconventional means like gift cards or wire transfers.

Diploma mills and fake degree scams

Diploma mills promise degrees based on life experience or minimal coursework, often at a high cost. These degrees are worthless and not recognized by legitimate employers or educational institutions. Genuine degrees require significant time, effort, and accredited coursework. Always check a school’s accreditation status through reliable sources like the Department of Education’s College Navigator site.

Protecting yourself from scams

Scams targeting college students are pervasive, but they can be avoided by following these simple steps:

• Verify information directly: Always verify tuition, financial aid, and scholarship information through official school channels
• Be skeptical of unsolicited offers: Be wary of any offer that seems too good to be true, especially if it involves upfront payments or demands for personal information
• Avoid unconventional payment methods: Legitimate institutions do not request payments through gift cards, wire transfers, or cryptocurrency
• Report scams: If you encounter a scam, report it to the FTC at ReportFraud.ftc.gov. Sharing your experience can help protect others

College should be about learning and growing, not falling victim to fraud. Stay sharp, be skeptical, and keep your money where it belongs—in your pocket. Remember, knowledge is the best defense against scams, so stay informed and help others do the same!