7 Ways to Spot a Scholarship Scam
If your a college bound student or a parent of one, you’ve got to be very careful, because you are on a lot of shady people’s list.
You are going to get a lot of offers by phone and by mail for scholarship searches, or telling you you’ve won a contest or scholarship…and most of them are TOTAL scams.
Seriously, it’s a huge problem that costs parents over 100 MILLION dollars each year. And that is just what gets reported. I’m sure the actual amount is much, much higher.
So, let me tell you what to watch out for…by the way, feel free to pass this along to any of your friends.
First, let me give you the goal of someone who would try to scam you. It’s one of two things:
1.To get you to pay for something that isn’t going to help you and in fact is a total waste of money
2.To get you to disclose your personal information to them, so they can steal or abuse your identity.
With that said, here’s what you’ve got to be careful of.
- Anyone calling you to tell you that your student has won an award or scholarship, and they just need some personal information (like a bank account number or credit card number) to ‘process’ your award. A legitimate scholarship is NOT going to charge a processing fee…..ever. Period. So do NOT be giving that information out.
- Also, beware of any scholarship that you have to pay to enter. Even if the fee is modest, you shouldn’t pay anything. Many of these are just ‘lotteries’….meaning that they collect a ton of money from unsuspecting parents, and then award one token scholarship…just so they don’t get in trouble with the law.
Technically, this is legal, but don’t waste your time, it’s still a scam. Go to a 7-11 and buy some lottery tickets instead. The result will be about the same, and hey, at least you don’t have to write an essay!
- Beware of high pressure. If somebody is calling or mailing you and is trying to put pressure on you, it’s almost a sure sign of a scam. Look, most legitimate scholarships have thousands of applicants, so they don’t HAVE to pressure anybody. In fact, just the opposite, they have students lined up trying to win their money. If you are not interested, that’s fine, they’ll just move on to the next student, but they won’t pressure you, they won’t be asking you for money, and they will send the college or you a check, they WON’T need your credit card number. (Sorry, that was just a little review of what we’ve covered so far).
- Beware of any company that ‘guarantees’ you will win a scholarship. Many will just take the money and run. No one can guarantee the scholarship except the organization that is giving it out.
- Watch out for anyone telling you ‘We’ll do all the work for you’. Getting scholarships is a ton of work, and though a good service can weed out what not to waste time with, the student still has to do the work.
- Many scammers will go out of their way to use official sounding names, like: ‘federal’, ‘national’, ‘education’, or ‘foundation’ to fool parents into believing they are legit.
- Lastly, remember that private scholarships account for only about 3% (no, that’s NOT a typo) of the total money that is out there.
Our office is focused on getting you the other 97%, making sure your kid gets into the right college, and making sure you can reasonably afford your share, among other things.
Tips to Make the Most of Your College Visit(s)
If you are even thinking about going to college in the next few years, visiting your potential colleges is one of the most important steps that you can take. Just like you wouldn’t buy a car without going for a test drive, you would be amazed at what you can learn about a school in just a few hours. So, to help you get started, here are some tips to make the most of your visits:
1. Start by visiting one type of each college you are considering. For instance, if you are not sure whether you would like a smaller or larger college, visit a couple of schools that are close by that represent each type, like a large public school and then a smaller private school. At least now, you’ll have something to compare.
2. Do your homework before you go, and narrow your choices by using a good school selection program. You can find some good ones online or contact my office at the address below for our suggestions. Also, make sure that the schools you are considering actually have the major you are interested in. I know it sounds obvious, but you’d be surprised at how often people skip this step.
3. Schedule your visit when school is in session. I can’t stress this one enough, but it is very important to see not only what the campus looks like, but what the students and faculty are like as well. We want to make sure that you will feel like you ‘belong’ once you are there, so we want you to see the student body and not just a bunch of buildings.
4. Make an appointment to take a tour. Schools will have certain times of the day or week set aside to give new people tours. This is always a great place to start. However, don’t be afraid to go with your instincts. If you pull up to the school and realize you just don’t like it, there’s no point sticking around. Also, staying overnight in a dorm, if the school offers it, is a great way to get to really get the college experience.
5. Ditch the tour guide. Once you’ve learned some of the main features of the school, the best way to see the campus is by wandering around on your own for awhile. This will give you a chance to see what everything is really like. Be sure to sit in on a class or two, or at least poke your head in the door.
6. Get a soda or coffee in one of the student lounges. While you’re at it, get something to eat as well. You might as well find out now what the food is like now. Some schools are known for having 5 star cuisine, while others have food that is barely edible. You’re going to be there for four to five years, so this is an important step. We don’t want you to starve!
7. Check out the library, computer lab, gym, and laundry. Even though this isn’t directly related to what you’ll be studying and your major, you’ll be spending plenty of time at all of these areas, so be sure to take a look at them as well.
While this list isn’t comprehensive, hopefully it will give you a real good feel for what each campus is like. You will do much better at a school that you are happy at and enjoy attending, so don’t assume that all schools are the same and that this step isn’t necessary. Or, worse, don’t make the mistake of waiting until you hear if you’re in or not before arranging a visit. We want to make sure the schools that you apply to are schools that you actually want to attend. Most of all, be sure to have fun.
Interviewing for College in Style
Looking Good, Feeling Good
When preparing for your college interview, take the time to be presentable. That doesn’t mean wearing a three-piece suit or an evening gown. Wear something nice that you feel comfortable in.
Chances are your interviewer will also be wearing something nice, but not particularly formal clothing. Don’t out-dress your interviewer. And don’t wear your grungiest jeans either. Middle of the road is what you’re aiming for.
If you have a favorite shirt, skirt, or jacket, go ahead and wear it if it’s clean and otherwise inoffensive. The idea is to wear something that makes you feel confident and attractive.
Avoid clothes that require your constant attention. In general, anything too revealing or too confining will have you fidgeting and readjusting throughout the interview. This will distract both you and your interviewer.
Don’t chew gum: it’s distracting and disrespectful.
Brush your teeth and do something with your hair so that you can forget about it during the interview. If you’re sporting a pink Mohawk, chances are this will neither hurt nor help your chances of admission. In other words, you don’t need to lose your personal sense of style completely, just make an effort to be presentable. This will suggest that you actually care about the interview.
By the way, if you’ve got a Mohawk, try offsetting it with your mother’s pearls or a crisp Oxford button-down (Sarcasm).
Don’t Worry About the Time
Students are sometimes told that the sign of a good college interview is a long one.
This is a myth.
During college interviewing season, which stretches from September to January, most colleges schedule interviews back-to-back with no breaks for the interviewer. So, even if you happen to be having a conversation that your interviewer would really like to continue, he or she is on a tight schedule and will probably not be able to do so.
If you notice you’re interviewer checking the time, this is not an indication that you’re boring. He or she simply needs to make sure that the next interviewee is not kept waiting.
Most college interviews will last approximately 30 minutes. Occasionally they’ll run as long as 45-60 if your interviewer is a talker.
If you’re done in twenty minutes sharp, don’t sweat it. Your interviewer will appreciate getting the information he or she needs as quickly as possible. Remember, the interviewer has many more interviews to conduct. Do your part to make sure that the interview lasts at least twenty minutes by responding to questions using complete sentences, expressing curiosity about the school, and bringing questions that you’re genuinely interested in.
As uncomfortable as you may be feeling, imagine what it’s like to interview students who cannot or will not reveal much about themselves. Conversely, it can be frustrating to interview a student who talks endlessly without regard to the interest of the interviewer.
Although you won’t be able to control the length of your college interview, you can do your part by listening carefully, offering thoughtful answers and asking questions whose answers cannot be found elsewhere.
Grandma Says: Always Send a Thank-you Note
Sending a thank-you note is the kind of thoughtful gesture that makes you seem mature and gracious. Your interviewer will appreciate getting it, and you’ll feel good about sending it.
The best notes are hand-written on a card that you really like. If it’s a really interesting or beautiful card it may end up taped to the wall of your interviewer’s office.
Keep the contents of the card simple, honest, and clear. If there’s something specific about the interview that was helpful to you, let your interviewer know. If you connected with your interviewer over a band you’re both into, or a book, experience, etc., mention this. If there was nothing particularly memorable about the interview simply thank him or her for taking the time to meet with you.
Express your continued interest in the college, and wish him or her the best. You don’t need to send a card that sounds stiff and contrived. Simple, clear, and honest is the way to go.
If it’s difficult for you to send a card, go ahead and email your interviewer.
The point is to acknowledge that he or she took the time to meet with you, answer your questions, and get to know you better. Reach out in any way you’re able to.
The card is a nice gesture, but a thoughtful email gets the point across. Don’t worry about finding an expensive email card or signing your name electronically.
Sending thank-you notes or emails is not something that will earn you huge points in the college admissions game. It’s just the right thing to do, and you’ll feel better when you do it.
If you’re sending a card, you might ask someone to look it over before sending it. You’ll definitely lose points for typos. Make every effort possible to present yourself as someone who takes the college application process seriously.
Watch what you put on Myspace or other Online Groups
In March of 2008, almost 85 students from onehigh school in Vermont were suspended or kicked off of sports teams for photos that were posted on online websites like MySpace and Facebook that showed them engaging in various forms of debauchery. So, if you’ve been working hard to get into college—busting your hump to get good grades, studying late at night for the SAT, polishing and perfecting your essays, and preparing for campus interviews—you’re not done just yet.
Now, don’t worry: I’m not going to lecture you about your moral code. What I do want to talk about is how NOT to let a stupid photograph or blog post ruin your chances of getting in…or worse.
First, let’s talk about the current state of affairs: it’s reported that up to 85% of the students at any given school or college post to at least one of the major social websites, whether it’s MySpace, Facebook, Xanga, LiveJournal, Friendster, Twitter, etc. The problem is that, while some students believe that what they post should be private, or that they have the right to ‘express themselves’ and it shouldn’t matter to anyone else, the reality is every post you make online is public, and in some cases…permanent.
It does matter.
Think back on how many celebrities like Vanessa Williams, Cameron Diaz, and untold reality TV contestants have had embarrassing photos resurface once they became famous.
Well, your college may be searching online for you, and there is nothing you can do to stop it!
Charles Samuelson, the Executive Director for the ACLU, was quoted as saying, “Anyone who thinks that something posted on a social website is private is an idiot. A student’s civil liberties are NOT being violated if a school or college uses such information to discipline a student or to make admission decisions.”
The good news is this: most colleges are not surfing the web for your profile. Admissions officers from both Stanford and MIT recently claimed that they were among those schools that did not look up students online. However, many schools do; and many potential employers will as well.According to a 2007 study by ExecuNet, 83% of head-hunters and recruiters use web research as part of their screening process. And more than one employee has been fired for what their employers found online.
Penn State recently used a Facebook group called “I rushed the field after the OSU game (and lived!)” to charge two students with criminal trespassing. And the police busted an underage drinking party at George Washington University after they found the invitations online.
Further, even if you remove a page or post, it never really goes away.It can be copied and saved to anyone’s computer, found as a residual page/image file on metacrawlers like Google, or archived, more or less forever, on sites like WayBackMachine.com. Let me say that again: it never really goes away!
So, let’s discuss some ground rules for posting on social websites, so nothing comes back to haunt you later.
1. For safety’s sake, NEVER post personal information like your address, your schedule, phone numbers or anything like that. Ladies (and Gentlemen) there are way, way too many crazy, would-be stalkers out there already. You don’t need to give them cause to fixate on you, or make it any easier to find you.
2. Make your profile private so strangers can’t look you up, and be careful about allowing new ‘friends’ that you don’t know personally to access your website (see #1 above). Even if you act cautiously, remember what I said above about nothing really being private!
3. Here is a great tip from Charlotte Oswald about what you post: She calls it the “Grandma Test”, which basically means if you wouldn’t want your grandmother to see it, then you don’t want other adults to see it either. Your grandma may not know how to use a computer, but more and more seniors are taking classes to help them use this “newfangled” thing called the internet; and you do NOT want to be responsible for giving your grammy a heart attack, now, do you?
4. Be careful about what your friends post about you on their sites as well. If there is anything damaging, make sure they remove it ASAP!
5. This last one isn’t directly related to social networking, but I felt it was relevant. Think about the email address you use to communicate with a college or potential employer. I promise you they will not be impressed with a letter from the likes of boozehound@gmail.com or wildpartygirl17@yahoo.com. As boring as it may seem, john_smith@aol.com or smithja@mail.net will work just fine.
Again, I’m not trying to rain on your parade. I’m merely suggesting that you review your online websites and blogs for anything questionable or damaging before your submit a college application or resume, and think twice before you post in the future. I do NOT want to see all your hard work go to waste because of some photos of you getting…well…wasted.
Credit Crisis: What to Expect
It’s been almost two months since the passing of the Emergency Economic Stabilization Act of 2008, more popularly known as the Bailout Bill. Certainly, the stock market has felt a majority of the pressure as it picks itself up only to fall back down a few times every day. But how has this all impacted higher education?
In our conversations with financial aid experts, we’ve uncovered the effects of the economy on eligibility, availability, and cost of student loans.
“The bottom line,” say financial aid experts, “is most students and families should still be able to obtain federal education loans.” Experts are quick to add that families with bad credit will encounter trouble in getting a loan. Some families will also have to find new lenders.
As a result of cost, students will opt for less expensive colleges in order to avoid having to vie for a private student loan. Additionally, customer service in the lending sector will deteriorate, meaning that families can expect longer hold periods on their loans.
Though the Bailout Bill shouldn’t affect the federal budget in the long run, financial aid experts warn that it could be used as an excuse to cut spending. A likely target is the Pell Grant, especially since recent funding has exceeded appropriations. Last year, in fact, Congress cut $69 off the maximum Pell Grant and cuts are likely to occur again this year.
College budgets will also be affected. Lenders have been cutting off loans to fund building projects and payroll. Financial aid experts state that “increases in the cost of financing will ultimately lead to increases in tuition rates.”
Although the Bailout Bill hasn’t directly affected the student loan and higher education markets, the overall effects and scare of the economy have begun to take their toll indirectly. Families going through the college search process will have to examine their financing options more stringently with the increasing costs of college and student loans.
Q. I have heard that I should never pay someone to complete my high school senior’s financial aid forms. What do you think?
A. I respectfully disagree with this position. The basis for this position is typically: “The FAFSA form is a free application for federal student aid, so why would anyone pay to have it completed?”
The federal government has many free forms, including IRS Form 1040, Schedules A, C, E, K-1, etc. While many families successfully complete their own income tax returns, often with the help of TurboTax, others choose to hire a professional to not only assure their accurate completion but to formulate strategies as well.
Family financial profiles resulting in a simple 1040A or 1040EZ tax filing may indeed result in an equally simple FAFSA filing. But what about the family that has a small business, or rental properties, or retirement accounts, or a trust fund, or a grandparent-owned 529 Plan? What if the parents are separated or divorced? And what about schools that require not only the FAFSA form but the CSS PROFILE as well?
In my view, the biggest fallacy conceptually in never hiring a professional to complete financial aid forms has to do with the planning aspect of paying for college. Back to our tax analogy: There are tax preparers and there are tax planners/strategists. Taking your receipts for the past twelve months in a shoe box to an accountant on April 14 will not afford him the opportunity to offer you any planning tips on how you might reduce your tax liability this year. But what about if you sit down with him after tax season and ask what can be done to strategically reduce your tax liability next year? Now you are planning! There is a lot more too strategic tax reduction than just “filling out the forms.”
This is so analogous to a good college planner who understands the federal rules and regulations as well as private university policies relative to financial aid eligibility. Strategic planning can indeed optimize many families’ eligibility. And again, this involves far more than “filling out the forms.”
Kids and the Price of College
Your kids are getting older and the price of college keeps getting higher. On top of that, when you have three kids like the Oswald family, the cost of college can be crippling. With a 15, 12, and 8-year-old, the Oswald’s are gearing up for hundreds of thousands of dollars of investment. We would like to give a little advice to the Oswald’s and other families out there with many kids.
- Lock in tuition now: Many programs like College Illinois and Independent 529 enable you to invest in college now and lock into the price of college today rather than pay much more down the road. As parents, you contribute just like a regular 529, plus other family members can chip in as well.
- Remember EFC: Expected family contribution, that is. EFC is the basis of FAFSA and, theoretically, the more college-bound children, the more financial aid you should receive. While this surely won’t solve your problems, it will help in getting those federal loans for school.
- Target Schools that Give: Lesser-known colleges are more willing to giving out merit scholarships to students who perform well. A child who would be an average applicant to a top school would be a stellar applicant at lesser-known institution. Schools are willing to pay for a part, or even all, of their tuition to lure that student to attend, because it means the quality of their student body will improve.
By thinking strategically and with enough foresight, parents can lessen the burden of college costs on themselves and on their children in the future.
President-Elect Barack Obama’s Views On Higher Education
Due to a problematic U.S. economy, there was little mention of higher education in either the Republican or Democrat presidential campaigns. However, President-Elect Barack Obama has made many proposals about higher education throughout his career which may become law during the next four years, such as:
Loan programs
- Eliminating subsidies to lenders and running all student-borrowing through the direct lending program. He stated that eliminating all the subsidies given to private companies would allow extra money for Pell Grants
Increased access to higher education
- A fully refundable tax credit to cover the first $4,000 in college costs, which in many cases would cover two years of tuition at a community college. The only requirement would be 100 hours of public service a year
- Simplification of federal aid applications
- Keep Pell Grant maximums rising at the level of inflation, or higher
Community colleges
- Create a new grant program for community colleges to conduct an analysis of the types of skills and technical education that are in high demand from students and local businesses
- Create new associate of arts degree programs that cater to emerging careers
- Reward institutions that graduate more students and also increase their numbers of transfer students to four-year institutions
Science and technology
- Expand the financing of federal research programs
- Create new programs to improve math and science education and attract more students to them
Other initiatives
- Affirmative action should not be eliminated; instead create a combination of class and race as factors
- Lift bans on Reserve Officers Training Corps programs
- Restructure the cost of college textbooks and disallow professors to assign only their own books as coursework
- Allow those without legal status to be in the United States to attend community college
President-Elect Barack Obama has offered many other unique ideas to make college more affordable; however, it is doubtful that any of these will be addressed in the near future as the current economy may warrant most of his attention. A complete analysis of all his education views can be found under “Issues” at http://www.barackobama.com/index.php
Net Price vs Advertised Price
The economic turmoil has all of us concerned about making any long-term financial commitments, including the cost of higher education. As the stock market makes huge jumps on a daily basis and we hear news about bailouts, a recession and rising unemployment; families with college-bound children are looking seriously at the price tag of college. There are many reports that families are now considering only less expensive public universities, rather than attending private institutions.
However, families may be surprised to learn that private colleges and universities can be as affordable as public ones. To provide a clearer picture of what a higher education actually costs, students and families should look at each college’s ”net price” (advertised price minus the amount of financial aid that students receive).
Private institutions use their endowments, in-house scholarships, and other programs to reduce many students’ overall costs by more than half. When this institutional aid is factored in, many students at public and private colleges actually pay similar amounts for their education. Furthermore, private colleges offer other benefits not typically found at public universities; such as, small classes, higher quality facilities, one-on-one contact with professors, an emphasis on high-quality teaching, and better out-of-classroom experiences.
If you are still in the process of choosing colleges, please contact our office prior to filing your financial aid form(s). We can help you to maximize your opportunity to get the best college deal, regardless of the “advertised” price.
Bailout May Have to Come from Parents…
While the government won’t bail students out of their loans, parents are the next option. With the job market in decline and salaries not keeping pace with loan debt, more and more students fall behind in payments. As a result, rates for deferments and forbearance have increased according to financial aid administrators.
The following story is one that we are hearing more and more,
“A Florida mother says that after her 23-year-old daughter took on $23,000 in loans to help finance a $160,000 undergraduate degree, the best job she could get last year paid less than $40,000, failing to cover rent, expenses and loan payments. In hopes of helping her gain entry to a higher-paying career, her parents picked up her loan payments, paid off $2,500 in credit-card debt and persuaded her to move back home, where she’s preparing to apply for law school.
Now that’s a bailout. Of course many parents, are happy to help out (if they can), but other kids aren’t so lucky. Of course, what your financial situation calls for changes your college plans. But stay clear of credit card debt as much as you can as 100 dollars on a card can lead thousands of dollars of debt down the road if not paid off. Remember, you don’t need the latest fad right away.
The Case for (and Against) Early Decision/Early Action
College planning can be stressful for both students and parents. Long before they face the challenge of finding college funding, students face an equally important challenge – the college admissions process. Filling out college applications and waiting to hear from admissions committees can make for a nerve-wracking senior year.
A great deal? Some students think so. Early admission can take the pressure off senior year, allowing students to finish high school secure in the knowledge that they have a spot reserved in the school of their choice.
But be careful. Because while early decision can secure your student’s place, it can also limit your student’s options. While statistics indicate that the odds of admission improve for early applicants, students who apply early face a much more competitive applicant pool. Likewise, schools have less incentive to offer extensive financial aid packages to early applicants, reasoning that such students are more likely to make up the difference on their own.
Finally, students can change their minds a lot between junior and senior year. A student who had his heart set on a school out east might well change his mind when he sees his friends migrating to Arazoni,. but if he’s opted for early decision, he’ll be required to attend his first choice.
How It Works
“Early decision” and “early action” are two standard options. Both allow your student to apply early, usually in November before the regular pool of candidates send in their applications. In return, the school lets your student know whether they’ve been accepted long before the usual acceptance date – often as early as December, before other students have even applied.
- Early Decision
Early decision is binding, which means if your student applies he or she must attend that school if accepted and given a reasonable financial aid package. Additionally, your student must withdraw any applications they sent to other schools.Your student should apply for early decision only if they are absolutely sure about where they want to go to college, if their profile suggests that they will be accepted and if financial aid is not an overriding factor in their college decision. Generally your student should not just be interested in the school, but in specific majors, programs or faculty at the school.
It is inadvisable to try to beat the system by applying for early admission at more than one school. Top schools often share lists of early applicants. If your student’s name appears on more than one list, he may be barred from all his top-pick schools.
- Early Action
Unlike early decision, early action usually isn’t binding and your student can apply to a number of schools and compare all admissions and financial aid offers. Most of the time, your student can wait until the late spring before having to make a decision. But college’s guidelines vary, so your student should be careful.As with early decision, your student should apply only if they are sure they can compete with other early action applicants. Students with weaker applications may wish to use their junior and senior years to bolster their grades and activities.
The Pros and Cons of Early Decision and Early Action
It’s important to weigh the pros and the cons of these programs. Everybody is different: Early decision and early action might be right for one student, but could be a mistake for another.
Pros
- If accepted, your student can bypass all the admissions stress that comes with senior year.
- If your student isn’t accepted, the application is deferred until the final acceptance decisions are made – so they will have more than one chance to get in. Additionally, your student will have more time to thoroughly explore other schools.
- Applying through one of these plans is a good way for your students to communicate their interest in a school – which might convince admissions officers to consider the application more seriously.
Cons
- Your students will have less time to make educational and financial decisions and less time to explore their options. Also, by committing to one school, your student rules out other schools that may offer more attractive financial aid packages.
- Your student won’t be able to improve your profile with senior year grades and activities.
- Early decision and early action candidates are usually very qualified, so it’s harder to make an application stand out.
If your student is interested in early decision or early action, he or she should speak to guidance counselors, ask the prospective school for more information and read the guidelines carefully. Then decide if early decision or early action is right for your student.