Thousands get swindled in scholarship scams each year, experts say


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SALT LAKE CITY — Every year, thousands of students and their parents get swindled in scholarship scams.

Telling the difference between the scams and legitimate opportunities can be confusing, especially for families sending a student off to college for the first time.

Fifty-six percent of the University of Utah's freshman class receives some sort of financial aid. A big chunk of that is scholarship money.

While scholarships open doors for college kids, to a scammer they are prime opportunities for a con. In fact, finaid.org estimates students and families are cheated out of as much as $100 million every year.

"It is prevalent out there," said Mary Parker, associate vice president for enrollment management at the U. "People do give their hard-earned money to these individuals."

Parker helps coordinate the school's financial aid efforts. The scam she hears about most from students and their parents begins with an unsolicited offer from a scholarship service agency.

"If you pay us $250, we're going to guarantee your son or daughter X amount of dollars," she said.

If you are ever asked to pay any sort of application or service fee, Parker said it's very likely a scam. Even on offers guaranteeing refunds, chances are you'll never again see the money you paid up front.

"No scholarship service can guarantee that your son or daughter is going to get a scholarship because they don't control those who actually award those scholarships," Parker explained.

Some students get invited to a free seminar on financial aid or scholarships offering advice and tips. Parker said many times they are another trap.

Mary Parker
Mary Parker (Photo: KSL TV)

"They provide food. And then throughout the seminar they reveal that they want you to pay for their service. They tell you they're going to guarantee winnings," Parker said.

"They tell you that tonight's the only night. 'We can help you, but you have to sign up tonight,' and parents get caught up in that," she said.

Nearly every university or college has a financial aid office. So, students and their families should never spend money on scholarship applications or even advice.

"Talk to the scholarships office. Call our financial aid office," she advised. "We don't want costs to stand in the way. It is going to be for us a seamless process for us to walk you through."

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