Finance Authority of Maine
FAME's 5 on the 5th
November 2012

 

Top Five Scholarship Gimmicks

 

There are numerous sources of FREE scholarship information available to students and we encourage you to seek out free money first!  Scholarship information is available online through national and Maine-based sources. Also, check with your guidance counselor, your college and employers. Don't be lured by the following scholarship gimmicks: 

 

1.   For-Fee Scholarship Search Services 

 

Many for-profit search services require that you send money up front, promising you exclusive access to a scholarship database. Instead, you'll receive a list of scholarships that you could have gained access to on your own - without paying. While these may not be "scams," there are far too many FREE sources available to pay someone to conduct your search.

 

2.   Scholarships for Profit 

 

While these offers may look like real scholarship programs, they are not.  Usually the scholarship requires that you pay a fee of $5 to $50. After receiving thousands of applications, the scholarship organization can afford to award a $1,000 scholarship and still make a large profit. The likelihood that you will win a scholarship through this method is pretty slim and you'll lose the fee that you paid.

 

3.   The Scholarship Prize 

 

These scholarships lure you by announcing that you've won a college scholarship worth thousands of dollars, but require you to pay a fee before they can release your prize. If you're awarded a "prize" that you didn't apply for - be suspicious.

 

4.   The Guaranteed Scholarship Search Service

 

Watch out for scholarship services that guarantee you'll win a scholarship. Legitimate scholarships are always competitive and will require that you first provide a completed application before you'll be considered.

 

5.   Free Seminars 

 

Watch out for offers to attend a free financial aid seminar that is NOT associated with your high school, FAME or another reputable Maine-based organization. While these seminars may provide useful information, they are often a sales pitch for fee-based financial aid consulting services.   

Finance Authority of Maine
www.famemaine.com
 
Tel:      (207) 623-3263
           (800) 228-3734
Fax:     (207) 623-0095
TTY:    (207) 626-2717 
 

The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status or sexual orientation. FAME is an equal opportunity employer, provider and lender.