Most scholarship programs are run by people who genuinely want to help students. A few offers are not. According to the Federal Trade Commission, scholarship and financial aid scammers say they will help you pay for school when they are really trying to take your money or your personal information. The good news is that scams tend to follow the same patterns, and once you know them they are easier to spot.
Should you ever pay to apply for a scholarship?
No. The Federal Trade Commission's advice is direct: never pay to apply for a scholarship. If someone promises you a scholarship or grant in exchange for a processing cost, a redemption fee or any other upfront payment, walk away. Legitimate programs decide by their own criteria and do not charge applicants to be considered.
| Real scholarship | Likely scam | |
|---|---|---|
| Cost to apply | Free | Asks for a processing, redemption or holding fee |
| Promises | Explains its criteria and selection process | Says the award is guaranteed or your money back |
| Timing | Publishes a deadline you can plan around | Pressures you to act today or lose the offer |
| Information requested | What the application needs to decide eligibility | Bank or card numbers, or your FSA ID |
| How it found you | You found it, or your school shared it | A personal-looking message about a contest you never entered |
Paying for help is not always fraud. Some companies sell scholarship lists or search services. The difference, as the FTC explains, is that legitimate companies never guarantee or promise scholarships or grants. Before you pay anyone, ask whether you could find the same help for free from a school counselor, a college financial aid office or a free scholarship search.
What are the warning signs of a scholarship scam?
The main warning signs are a fee to apply or to claim an award, a promise that you will win, a request for bank or card details, pressure to decide right away, and news that you are a finalist in a contest you never entered. If an offer uses phrases like the FTC examples below, treat it as a scam.
- "The scholarship is guaranteed or your money back."
- "You can't get this information anywhere else."
- "I just need your credit card or bank account number to hold this scholarship."
- "We'll do all the work. You just pay a processing fee."
- "The scholarship will cost some money."
- "You're a finalist" for a contest you never entered.
Watch for pressure too. Scam offers often arrive as a personal-looking invitation by email, social media or mail, and push you to pay right away or lose a special opportunity. Federal Student Aid gives the same advice: do not give in to pressure tactics.
Is the FAFSA free?
Yes. The Free Application for Federal Student Aid is free to fill out and submit, and the official form is on studentaid.gov. Some companies charge to fill it out for you. Federal Student Aid notes that if you are asked for a credit card number while filing online, you are not on the official site.
Free help is available from your school counselor, the financial aid office at the colleges you are considering, and the FAFSA's own help resources.
What personal information should you never share?
Never share bank or card numbers to hold a scholarship, never share your StudentAid.gov username or password, and ask why before giving a Social Security number to an organization you have not verified. Some scams are after your identity rather than a fee, so only share details when you started the contact.
- Social Security number. A scholarship application from an organization you have not verified should not need it. Ask why before sharing it.
- Bank or credit card numbers. Never give these to hold a scholarship or to confirm eligibility. Some scammers use them to take money without permission.
- Your FSA ID. Do not share your StudentAid.gov username or password with anyone, including a company or consultant offering to help.
- Contacts you did not start. Do not give personal information by phone or online unless you made the contact.
How can you check that a scholarship is real?
Check that the program has an official website with clear eligibility rules, that you can see who runs it and how to reach them, and that applying costs nothing. Search the organization's name with the words complaint and scam, and if you are still unsure, ask your counselor or a college financial aid office.
Before you share anything
- The program has an official website with clear eligibility rules
- You can find who runs it and how to contact them
- Applying costs nothing
- No one promises you will win
- You are not being rushed to decide today
- No one is asking for bank details, card numbers or your FSA ID
- An online search of the organization's name plus "complaint" and "scam" turns up nothing worrying
- Your counselor or a college financial aid office recognizes the program, if you are unsure
What should you do if you find a scam?
Stop responding and do not send money or information. Report financial aid and scholarship scams to the FTC at ReportFraud.ftc.gov and to your state attorney general. If you already paid, act quickly. The FTC has guidance on how to try to get your money back, and the sooner you act, the better your options.
Official sources
Rules and dates change. Check these pages for the current details.
