Beware of College Loans and Scholarship Scams

Most families have a minimum amount of funds to contribute towards their children's education. This forces many families to take out loans or apply for scholarships. Believe it or not, there are crooks out there looking to take advantage of these families. Here are some things you can do to protect yourself against scams when searching for legitimate loans and scholarships.

Just Pay a Small Fee: Even if the fee is small you should be weary when you hear these words. It only takes an extra 5 minutes to check out a company with the Better Business Beauru. If you still aren't sure don't be shy about asking the company to produce references.

Unclaimed Funds: Many companies will try to suck you in by telling you there are funds available that no one has claimed. This is never the case where scholarships are concerned. The benefactor always predetermines amounts and applicants are approved based on the qualifications set in place. There is also always a date in which you must submit an application and a date the funds will be awarded.

You Won't Get This Information Anywhere: If you are willing to spend the time digging, you can find all the information you need for free. The Internet makes this much easier and almost everything is posted on it.

Assured Results: What you will get is information you can find yourself by doing a search on the Internet. Like I said before, if you are willing to do the digging yourself it won't cost you a dime.

You're a Winner: Never believe anything that states you are a winner and then asks you for credit card or bank account information in the next breath. Most of the time you never even entered a contest, so how could you be a winner?

Still Not Sure: There are financial aid officers you can talk to. Call your local Community College or the School your child wants to attend. Ask for the Financial Aid office and check out the company with them. Most times they will be able to tell you whether the company is fake or legit. They can also help you apply or give you some pointers. I have found that most people love to answer questions they are knowledgeable in, so don't be embarrassed about calling and asking for help.

If you feel that you have been a victim of a scam you can report them to the National Fraud Information Center at 1-800-876-7060. You may also write to the Federal Trade Commission at 600 Pennsylvania Ave., NW Washington DC. 20580.