How to Avoid Scholarship Scams

It seems that everywhere we look, we need to watch out for scams. Who hasn't gotten e-mails from "attorneys" in foreign countries looking for long-lost relatives of a deceased billionaire? Now that we have an increased unemployment rate, there has been a rise in job scams as well - really sad, because innocent people who are already hurting are being taken advantage of.

In a previous article, I explained the process of school accreditation. I noted the importance of knowing if an institution is accredited prior to enrollment, as it will save you a lot of heartache and lost money. I also noted that you should beware of scams, such as diploma mills and fake accrediting institutions. This article will explore another education-related scam.

Scholarship Scams

As you seek to expand your education, watch out for scholarship scams. This is so rampant that the Federal Trade Commission (FTC) has a program called "Project $cholarship $cam." The FTC works with consumers to identify scams and publicize prevention information.

Scholarship scams usually ask for money upfront to help you locate scholarships or to "do all the work" in the application process for you. What makes them a scam is not that they offer the service; it's that they don't do anything for you and you've lost your money!

If you get an unsolicited e-mail or letter in the mail stating that you've "been selected" to receive a scholarship or "you've won" a scholarship - run! They may tell you, "We just need your credit card information to get you started." They may also ask you for other personal information such as your address, date of birth or bank account information. They may "guarantee a scholarship or your money back."

With such information, they will not only take your money; they may also steal your identity. And we all know what a total mess that can be! You might also be invited to a seminar or interview about preparation for college. What you end up getting is a sales pitch of some type and no help with college funding. They may pressure you and say, "Buy now or you'll miss this opportunity!"

Don't pay for help to fill out the Free Application for Federal Student Aid (FAFSA). It's true that FAFSA is free, and all information is available on the FAFSA website. Instructions for completing the form are also available. Remember: You do not have to pay someone else to complete it for you!

You can also research free information on scholarship scams on the U.S. Department of Education website. The Federal Student Aid website offers additional information about scams and how to avoid them. You can also contact your state's education agency. If you have a question about scholarship scams, contact your school's financial-aid department.

To help you in your search, I've located some legitimate scholarships for women, minorities and nontraditional students, as well as scholarships available to graduate students.

Scholarships for Women

• AARP Foundation Women's Scholarship Program: This program is for women ages 40 and older. Special consideration is given to women who are returning to the workforce after an extended absence, women who are in jobs with insufficient pay, or women with significant financial responsibility for one or more grandchildren.
• Business and Professional Women's Foundation: The Career Advancement Scholarship Program is for women who are advancing their careers or reentering the workforce.
• Educational Foundation for Women in Accounting: The Women in Transition Scholarships and Women in Need Scholarships are for women who are pursuing degrees in accounting at the undergraduate and graduate level.
• Google Anita Borg Scholarship: Open to women who are majoring in computer science, computer engineering or related technical fields. Students must be entering their senior year of undergraduate study or be enrolled in a graduate program.
• Jane M. Klausman Women in Business Scholarships: This scholarship, sponsored by Zonta International, is open to women in their third or fourth year of an undergraduate business program.
• National League of American Pen Women: A scholarship is offered every other year to female undergraduates, ages 35 or older, who are interested in art, music or writing.
• National Leased Housing Assoc. Education Fund: Scholarships are awarded to residents of federally assisted, low-income housing properties or recipients of Section 8 voucher assistance that demonstrate both merit and need.
• National Pathfinder Scholarship: Support provided by National Federation of Republican Women for undergraduate sophomores, juniors and seniors, as well as students enrolled in a master's degree program.
• The R.O.S.E. Fund: Scholarship program for women who are survivors of domestic violence attending colleges or universities in New England.
• Society of Women Engineers: Financial assistance is awarded for women preparing for careers in engineering or computer science.
• Talbots Women's Scholarship Fund: Scholarship awards are based primarily on financial need and previous achievement for women who earned their high-school diploma or GED at least 10 years ago.
• Women's Forum, Inc.: The Education Fund awards scholarships to women over age 35 who are living in New York City and are pursuing an undergraduate education.
• Women's Independence Scholarship Program: Funds for survivors of partner abuse who are in school to achieve the financial stability necessary for independence and self-sufficiency.
• Women's Opportunity Awards: Scholarships for women in college who are heads of their households.

Scholarships and Fellowships for Graduate Students

• American Association of University Women: Offers fellowships, scholarships and awards for undergraduate and graduate students. For more information, visit their website.
• American Indian Graduate Center: Fellowships for American Indians and Alaska Natives who are pursuing a master's or doctorate degree as a full-time student.
• Association for Women in Science: The Ruth Satter Award is open to female graduate students who have interrupted their education for at least three years to raise a family. Must be enrolled in behavioral, life, physical or social science or engineering with the goal of earning a PhD.
• CampusRN/AACN Nursing Fund: CampusRN and the American Association of Colleges of Nursing (AACN) are offering several scholarship programs for students seeking baccalaureate, master's or a doctoral degrees in nursing. Applicants must be enrolled at an AACN member institution and have a GPA of 3.25 or greater.
• Ethel Louise Armstrong Foundation: Available to women graduate students with physical disabilities who are in enrolled in college.
• Hispanic Scholarship Fund: Scholarships for students of Hispanic heritage with a minimum 3.0 GPA, who are enrolled in a full-time graduate program at an accredited institution.
• Jack Kent Cooke Foundation: This program is open to all disciplines.
• L'OREAL USA for Women in Science: Fellowship program for women pursuing studies and research in the natural sciences, computer science and mathematics.
• National Science Foundation Graduate Research Fellowship Program: Fellowships for graduate study in the fields of science, mathematics and engineering, supported by the NSF.
• Toigo Foundation: Gives fellowships to minority MBA students. Check the website for a listing of eligible business schools.