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Preparing for College for a Fee?

ACT, ETS, FAFSA and SAR: the flurry of acronyms and paperwork that await students and parents who wish to attend college is familiar to us. However, every year students and their parents seek assistance understanding the flurry of paperwork and acronyms that greet them.

Unfortunately, in an effort to complete and understand the financial aid and admission processes, some fall prey to scholarship and financial aid scams.

According to the Federal Trade Commission, every year unscrupulous companies guarantee assistance with the admission process or promise fantastic financial aid packages. Many use high-pressure sales pitches at seminars where you're required to pay immediately or risk losing out on the "opportunity."

Some unscrupulous companies guarantee that they can get scholarships on behalf of students or award them "scholarships" in exchange for an advance fee. Most offer a "money back guarantee"- but attach conditions that make it impossible to get the refund. Others provide nothing for the student's advance fee - not even a list of potential sources; still others tell students they've been selected as "finalists" for awards that require an up-front fee. Sometimes, these companies ask for a student's checking account to "confirm eligibility," then debit the account without the student's consent. Other companies quote only a relatively small "monthly" or "weekly" fee and then ask for authorization to debit your checking account - for an undetermined length of time.

If your students attend a seminar on financial aid or college preparation, suggest these steps:

  • Take your time. 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. No reputable company will ever ask you to sign before you leave the room or lose out on the deal.
  • Investigate the organization you're considering paying for help. Talk to a school counselor or financial aid advisor before spending your money.
  • 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.
  • 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.
  • Best tip yet: walk out of any “seminar” as soon as they ask for a fee of any kind, and ask for free help from any UW financial aid or admission office.

If you or someone you know suspects a scam, report the offer to the National Fraud Information center at 1-800-876-7060 or send an e-mail to SCAMS-L@finaid.org.
 

 

 

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