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Seeking Financial Aid for Post-Secondary Education in the U.S. |
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| Part I Financial Planning is the Key to University Education |
Part II Scholarship Search "Services" A Waste of Time and Money |
Part III Scholarship Information Available on Internet Computer Network |
Part IV Financial Aid from Universities |
Part V Other Resources |
Some crafty entrepreneurs in the U.S. and Europe have made a profitable business based on the desparation of international students seeking financial assistance. These scholarship companies claim that for a fee they can find the applicant a scholarship. However these claims are often misleading, if not fraudulent, and countless students have thrown their money away in the hope of getting a scholarship.
The Council of Better Business Bureaus, an American coalition of consumer advocacy groups that monitor complaints against private businesses, publishes this warning about the so-called scholarship research centers:
SOME SCHOLARSHIP OFFERS TAKE MONEY, NOT GIVE IT
With the first day of classes only weeks away, offers for "guaranteed" scholarships, grants and loans may look very attractive to those college students who didn't qualify or apply for financial aid. But before signing up, the Better Business Bureau warns students to do their homework.
BBBs report that unethical scholarship companies are "guaranteeing" to "match" students with sources of funding, regardless of their academic qualifications, scholastic credentials or family economic status. Some advertisements and sales pitches claim there are millions of dollars in unclaimed scholarship monies just waiting to be tapped. However, in BBBs' experience, few, if any, students receive funds.
In exchange for an up-front fee, which can range from $50 to several hundred dollars, students receive lists of possible scholarship sources. While the company making the offer may claim scholarships are "guaranteed," prospective students should understand that only the sources actually granting the funds can guarantee approval.
These scholarship companies do not assist students in obtaining scholarships and they do not screen applicants. After purchasing the lists, it is the students' responsibility to research and contact each organization with a possible funding source.
Although many ads offer "money back guarantees" or $200 savings bonds to students who don't receive any scholarship sources or funds, students who are unsuccessful, or not satisfied, may find that refunds are difficult, if not impossible, to obtain. The company may require students to prove, through documentation, that they were denied a scholarship by every source on the list.
For a reliability report on a scholarship company, consumers can call the Better Business Bureau where the firm is located. For a copy of the BBB's booklet, "Tips on College Financial Aid," send a self-addressed, business-sized envelope and $2 for postage and handling to Council of Better Business Bureaus, Dept. 023, Washington, DC 20042-0023. Copyright 1994 Council of Better Business Bureaus, Inc.