There’s no doubt that college grants, scholarships and fellowships can make tuition more affordable, whether you attend a traditional campus or an online school. These forms of financial aid typically don’t have to be repaid the way student loans do, but you don’t want to get scammed either. In 2008 there were 177 complaints about scholarship and grant programs (as reported by the Federal Trade Commission). This jumped in 2009 to nearly 840.
Free scholarship seminars and scholarship consultant visits might result in a company asking for as much as $2,000 for their services, the Smart Money report noted. One Arizona woman took up a federal stimulus grant money offer of $15,000, according to a March report from Phoenix-based ABC 15. The woman followed the offer’s instructions: cashing a $2,000 check that she received from a company and sending the company $2,100 that she thought covered taxes; but she never received the grant balance, and the $2,000 check provided to her bounced after her own money to the company cleared, ABC 15 suggested. If you need more information about pell grants, look on the internet.
Students and parents seeking online college grants, scholarships and fellowships might consider some advice from experts:
(1) Don’t get involved with free grant offers that arrive unsolicited, and don’t pay money for “free” government grants, the Federal Trade Commission and ABC 15 reporter Joe Ducey caution. If you have not applied for a government grant (online or otherwise) and are told you’re receiving one, it’s a scam, according to information attributed to the Better Business Bureau. And telemarketing calls can be stopped by registering your telephone number with the National Do Not Call Registry, the Trade Commission reminds.
(2) Don’t deposit checks when you aren’t familiar with who has provided them, and don’t wire money to anyone you don’t know, Ducey advises. Also, don’t give bank account information to a company you don’t know and when you don’t know why the information is needed, the Federal Trade Commission notes.
(3) Don’t listen to fake promises. There are legitimate companies out there touting that they can provide students with scholarship lists in exchange for advance fees, the Trade Commission notes. There are also companies that charge advance fees to take student profiles and compare them with potential scholarship opportunities, the Trade Commission reports. But legitimate companies never guarantee or promise scholarships or grants for online college and traditional college pursuits, the agency suggests. You might conduct an Internet search on unsolicited grant offers, Ducey says. And you might also make sure the names of government agencies are correct, the Trade Commission advises.
(4) Do research grants online and at the library and talk with financial aid representatives and guidance counselors. There’s typically no cost for applying for online college grants, scholarships and fellowships that schools, large companies, non-profit organizations and government agencies make available. Completing a Free Application for Federal Student Aid (FAFSA), which is available on the US Department of Education Web site, allows applicants to receive information about the types of government financial aid, including low-interest student loans, best suited to them. And a Web site that the Federal Trade Commission says is the only official access point for federal grant-making agencies in general includes an online database. The government itself doesn’t contact anyone to offer money, Better Business Bureau information on the database Web site reports. And the database Web site states that it doesn’t ask for social security numbers, banking or credit card information and that it doesn’t share information, except when it comes to government agencies that can offer assistance.
(5) Do your homework. If you’re attending a financial aid seminar, the Federal Trade Commission recommends you investigate the organization you’re considering paying for help and that you be wary of “success stories”. Ask for three referrals and then ask the referrals if they’re satisfied with products and services received. Ask the company about costs, services provided and their refund policy, and get this information in writing, the Trade Commission suggests. Be cautious of evasive seminar representatives and those who are reluctant to answer questions. Keep in mind that, with some operators, you may never see your money again, even with refund policies in writing, the Trade Commission reports. There is an abundance of information about grants for college on the web.
“Free” money almost certainly isn’t, either for traditional or online programs, if it comes from a company that is not legitimate. There definitely are student loans, scholarship, loan and aid sources, but research is your friend.