How to detect financial aid scams

Financial aid is a blessing to many kids going to college to help lessen the load for tuition money. However, is not when they find out they have been ripped off and the money they have had saved is gone as well.

Some companies offer this great grant and ask for your bank information and all they do is clean it out. However, how do you know it is a scam? Here are a few simple rules to follow:

•  if they ask you for money to get it

•  the old rule is, if it sounds to good to be true, then it usually is

•  if they ask for money for the information

•  if they say you won a scholarship

•  ask for application fees

•  you have unclaimed financial aid money

These are several tell-tale signs and these are just the most common. Just remember if you think you have been scammed, call your bank immediately, and explain the situation to them. The bank will then watch your account closely for any suspicious behavior. If there is a withdrawal that you never authorized they can stop it before you lose your savings or they rack up huge bills on your account.

Ask for verification

Other ways in which you protect yourself against financial aid scams is to ask the company how they received your name. Then verify it before even going along with the next process. Look for typing or spelling errors because a reputable scholarship will not have errors.

Get everything in writing before sending money. Make sure you keep good records so you have back ups in case you have to contact law enforcement agencies.

The Better Business Bureau has had hundreds of complaints against companies that say they have received offers for free grant money to help pay off college bills. They receive a check in the mail and are asked to send so much back to them for processing fees and then find out the check is a fake. Then the students are responsible for the money to be paid back to the bank.

If they tell you that, they ‘do all the work', ‘The scholarship is guaranteed, or ‘your money back', and ‘the scholarship will cost some money' are some of the fake grants or loans you will come across. If they do not have a phone number, be leery. If they tell you that you have won a scholarship, don't believe it because they will let you know by mail not over the phone. Check out sources at the government offices or schools for legitimate scholarships.