Avoiding Scholarship Scams
By Deborah Hardy

"CONGRATULATIONS! You have won a $10,000 scholarship for college. To obtain your award, please forward a $100 processing fee to..."

Usually, most parents and students would not go beyond those first words. Eventually, students and parents come to realize that it was only a scam. Instead of winning, they have lost.

How can you determine which scholarships are legitimate? To avoid being the victim of a scholarship scam, set up guidelines to identify which scholarships might be of concern. Here are some warning signs to look for:

• Processing Fees
  Scholarships that require a processing fee should raise a red flag. Some scholarships add a disclosure statement that guarantees the winnings and states that students will be eligible for a refund. These are additional scam slogans to ensure that students will be comfortable as consumers. In reality, the money never returns.
• Rewards without Entries
  For most students, writing another essay after all of the college process is tedious. When an award is given without having to submit an application, it is quite surprising. Beware the awards without entries.
• Guaranteed Scholarships
  In the world of financial assistance, there is never any guarantee. Guaranteed scholarships never materialize.
• Free Seminar
  This on-the-spot scam lures you by sending letters that ask you to attend a seminar in which the organization will present attractive materials that guarantee you will qualify for a scholarship. A fee is charged or may be deducted from your bank account. You receive a package with a few scholarships listed. Often, other sources, such as the school counselor or a credible database, will have information on the scholarships presented.

Now that you know how to spot scams, how can you protect yourself from these scams? For starters, never pay a fee. A scholarship is a gift from a given group. Why should anyone have to pay to process an application or to receive an award? Also, if it sounds great, beware. Get more information about the organization. Call the Better Business Bureau or visit the Web site at www.bbb.org. When dealing with scholarship organizations, be savvy and determine whether a group's name seems to masquerade as a federal organization or a charitable program.

Many scholarship databases provide accurate and reliable sources. Ask your school counselor before you apply. Getting the right information can earn you the biggest reward of all.

Deborah Hardy is director of guidance at Irvington High School in New York.