Home News Be on the Lookout for Monetary Support Scams
News - May 2, 2021

Be on the Lookout for Monetary Support Scams

(BBB) – Throughout this season, many college students are within the strategy of securing monetary support for the upcoming semester or educational yr. Whereas scholarships, grants, work-study, and loans assist make school extra reasonably priced, scammers are taking this chance to attempt to steal a few of that cash by way of varied schemes and scams. Higher Enterprise Bureau of North Alabama recommends warning when making use of for monetary support alternatives.

Utilizing phrases like “nationwide” and “federal” to sound extra official, scammers sometimes pose as a monetary support consultant from the federal government, a college, or a nonprofit group. They declare you’ve received a scholarship or grant with out ever making use of and ask for fee of a one-time processing payment.

In one other situation, the scammer pressures you into making use of for a assured scholarship or grant. Nevertheless, there’s a payment to use. You pay up, however by no means obtain the promised cash, and the corporate has set so many situations that it’s nearly at all times inconceivable to get a refund.

In case you are available in the market for monetary support for faculty, preserve an eye fixed out for the next purple flags:

  • Scholarship Applications that Cost an Software Payment: Watch out for scholarship foundations that cost an software payment, even when the payment is minimal or the inspiration claims the payment is to solely encourage critical college students to use. Official scholarship foundations don’t cost an software payment or cost one with the promise of a refund if a scholarship just isn’t awarded.
  • No Work Concerned: Be cautious if a scholarship service claims they’ll apply in your behalf. A professional scholarship program would require an applicant to submit their very own software, essay, and/or letters of advice.
  • The Scholarship or Monetary Support is Assured:  Keep away from scholarship or monetary support providers that declare you might be assured to obtain cash. Official scholarship and monetary support matching providers don’t have any management over who’s finally chosen for a scholarship or qualifies for monetary support. Normally, this assertion is made to entice you into paying a payment for assist in making use of for a scholarship.
  • You Have Been Chosen With out Making use of:  Be cautious of letters or telephone calls stating you’ve been chosen or you’re a finalist for a scholarship you by no means utilized for, this can be a signal of a rip-off. Genuine scholarships don’t ship college students unsolicited gives. Watch out to not give out private info, banking info, or write a examine to companies which might be unfamiliar or suspicious.
  • The Advance-Payment Mortgage: Keep away from lenders that give you a unusually low rate of interest for an academic mortgage after which require an upfront payment earlier than you possibly can obtain the mortgage. Solely work with lenders or banks that you just acknowledge. In case you are trying to find an academic mortgage, bear in mind that actual lenders don’t cost an upfront software payment, moderately they deduct their processing charges from the examine earlier than the coed receives the mortgage.
  • Invitation to Attend a Seminar.  Should you determine to attend an informational seminar on scholarships and monetary support, bear in mind that is probably a gross sales pitch for scholarship providers. Whereas on the seminar don’t be pressured into paying for providers on the spot. Earlier than you buy any providers rigorously examine the group and see if you will discover the identical providers totally free. Don’t make a purchase order if the consultant doesn’t straight and absolutely reply your questions.

Supply: BBB.org

If you need to report a rip-off, name 256-533-1640 or go to BBB Rip-off Tracker.

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