At first it sounds like good news. “Congratulations!” announces the letter/email/fax. “You have been awarded a college scholarship!” You’re ready to celebrate…then you scroll down to the rest of the text. “To claim your reward, please pay a processing fee of…”

Whoops. That’s a scholarship scam! Unfortunately there are unscrupulous individuals who would like to take advantage of individuals who are in desperate need of financial aid. They hope that by offering an unexpected answer to their prayers, the excitement and enthusiasm will temporarily blind their victims. They send the money, and the, it’s too late. These con artists have fled.

So how do you tell if a scholarship or a grant is the real thing? In order to avoid being victimized by these charlatans, you should be able to spot the typical lines that they use.

“It’s free, except for a processing fee….”

Anything that asks for an initial processing fee should send off warning bells. While some schools may ask for miscellaneous tuition costs these are usually paid upon enrollment.

It doesn’t matter if the letter states that you will get a refund. They know that nobody will actually pursue the complaint seriously since the legal fees will exceed the amount. It’s purely a marketing ploy.

No applications required!

How can you win a scholarship that you haven’t even tried for? Or get the prize for a contest you never even entered? Legitimate organizations have very stringent application requirements and give financial aid only to the most deserving applicants.

Full 100% Financial Aid Guaranteed!

No financial institution will guarantee anything. In fact they will often have the disclaimer that they reserve the right to discontinue financial aid at any given time. So if the letter is making sweeping promises it’s because they never intend to keep them.

Just attend our seminar, and you’ll get the money!

This scam baits people into attending a course or event that supposedly puts them in touch with financial aid institutions. While there are legitimate meet and greets, no credible organization will guarantee that just by showing up you can get aid. At the very most you will get a directory of some institutions, which you could’ve found on your own through the web or by visiting the financial aid office of your school.