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Little Rock, Ark. —
It’s a rite of Spring for college-bound Arkansans: The search for scholarship money to help defray the cost of higher education. Unfortunately, some scholarship hunters in Arkansas this year may fall prey to scam artists looking to take money, not award it.
Both the Attorney General’s office and the Arkansas Department of Higher Education last week received reports of Arkansans who were asked by telephone solicitors to provide a credit card number to pay for a “scholarship” processing fee. At no time is a state-funded scholarship recipient required to use or share credit-card information in order to receive such a scholarship. In addition, most private companies that offer scholarship help would never ask applicants to provide a card number over the phone. Therefore, Attorney General Dustin McDaniel and the ADHE today issued this special consumer alert to warn Arkansans about these types of scams.
“We traditionally see around this time of year a number of complaints regarding con artists who attempt to take advantage of hard-working students trying to pay for college,” McDaniel said. “Applications for state-funded scholarships don’t cost anything. Applications for the vast majority of other financial aid are free as well. Consumers should be wary of guarantees of scholarships in exchange for an advance fee.”
ADHE Interim Director Shane Broadway emphasized that scholarship programs offered or administered through the Department are free to students. Representatives of ADHE will never contact a student asking for a payment.
“The only financial information that a student may be required to provide is data required for income-based grants and loans,” Broadway said. “Even those do not require credit card information. Anyone contacted or asked for a credit card number in exchange for a scholarship should let us know at ADHE or contact the Attorney General’s office.”
Though scholarships administered through ADHE are free, some colleges may assess fees for copies and transcripts. Students should be wary of individuals who require payment for help in applying for state and federal financial aid, since financial aid offices at higher-education institutions throughout Arkansas offer those services for free.
McDaniel said Arkansans should also be cautious when private companies offer lucrative scholarship, grant or financial aid packages in exchange for an advance fee. According to the FTC, some of these companies provide nothing in return for an up-front fee. The company may debit a student’s checking account without consent, quote a monthly or weekly fee that is paid for an undetermined length of time or claim a student to be a “finalist” for a contest never entered.
It’s a rite of Spring for college-bound Arkansans: The search for scholarship money to help defray the cost of higher education. Unfortunately, some scholarship hunters in Arkansas this year may fall prey to scam artists looking to take money, not award it.
Both the Attorney General’s office and the Arkansas Department of Higher Education last week received reports of Arkansans who were asked by telephone solicitors to provide a credit card number to pay for a “scholarship” processing fee. At no time is a state-funded scholarship recipient required to use or share credit-card information in order to receive such a scholarship. In addition, most private companies that offer scholarship help would never ask applicants to provide a card number over the phone. Therefore, Attorney General Dustin McDaniel and the ADHE today issued this special consumer alert to warn Arkansans about these types of scams.
“We traditionally see around this time of year a number of complaints regarding con artists who attempt to take advantage of hard-working students trying to pay for college,” McDaniel said. “Applications for state-funded scholarships don’t cost anything. Applications for the vast majority of other financial aid are free as well. Consumers should be wary of guarantees of scholarships in exchange for an advance fee.”
ADHE Interim Director Shane Broadway emphasized that scholarship programs offered or administered through the Department are free to students. Representatives of ADHE will never contact a student asking for a payment.
“The only financial information that a student may be required to provide is data required for income-based grants and loans,” Broadway said. “Even those do not require credit card information. Anyone contacted or asked for a credit card number in exchange for a scholarship should let us know at ADHE or contact the Attorney General’s office.”
Though scholarships administered through ADHE are free, some colleges may assess fees for copies and transcripts. Students should be wary of individuals who require payment for help in applying for state and federal financial aid, since financial aid offices at higher-education institutions throughout Arkansas offer those services for free.
McDaniel said Arkansans should also be cautious when private companies offer lucrative scholarship, grant or financial aid packages in exchange for an advance fee. According to the FTC, some of these companies provide nothing in return for an up-front fee. The company may debit a student’s checking account without consent, quote a monthly or weekly fee that is paid for an undetermined length of time or claim a student to be a “finalist” for a contest never entered.
McDaniel offered these tips:
*Avoid phone solicitors who ask for credit card numbers in exchange for scholarship aid.
*Before paying for a list of available scholarships or for assistance from private companies, talk to a guidance counselor or financial aid advisor. They may offer the same help for free.
*Back away from high-pressure sales pitches. Students who do choose to pay for outside assistance shouldn’t have to do so immediately, prior to investigating the organization to make sure it provides legitimate help.
*Be wary of extraordinary testimonials or success stories about the products and services offered for a price. Instead, ask about families who have used an organization’s services in the last year and call those families to see if they are satisfied.
For more information or to report a scholarship scam, call the Attorney General’s Consumer Hotline at (800) 482-8982 or (501) 682-2341. Visit the Attorney General’s Office on the Internet at www.arkansasag.gov. Contact ADHE at (501) 371-2000 or visit www.adhe.edu.
