Florida Consumer E-Newsletter - June 2009
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
The Governor has recently signed a law raising the tuition for state universities by as much as 15% and will increase tuition every year until the tuition for Florida universities matches the national average. With tuition bills skyrocketing, and room and board going through the roof, students and their families are looking for creative ways to finance a college education. Unfortunately, in their efforts to pay the bills, many of them are falling prey to scholarship and financial aid scams.
The Florida Department of Agriculture and Consumer Services is here for you - our Consumer Hotline will answer any questions you may have or direct you to the best resource for assistance. If you are calling within Florida simply dial 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832). You can also visit us online at www.800helpfla.com for additional information.
Sincerely,
There are a lot of “official” looking offers that will come your way when you start looking for scholarships, grants, and loans for college. You will hear of these so-called offers at seminars, in emails, over the phone from telemarketers, or online. These offers and their websites may look “official” and sound real, but they are actually scams or just plain rip-offs. Often they will start asking for your personal financial information, such as Social Security number and bank account numbers, while making ridiculous promises and unreasonable requests, like:
- Millions of dollars in aid go unclaimed every year; don't you want some of that money?
- I just need your credit card or bank account number to hold this scholarship
- You've been selected by a “national foundation” to receive a scholarship
- The scholarship will cost some money
- You can't get this information anywhere else
- Buy now or miss this opportunity
- We'll do all the work
- The scholarship is guaranteed or your money back
Tips to avoid scholarship scams:
- Learn to recognize the warning signs – if it sounds too good to be true, it probably is!
- Check its reputation by contacting the Division of Consumer Services, your school’s guidance counselor, the local library, look for blogs about the business on the internet.
- Contact the Office of Financial Aid at the school or university you are interested in attending. They can provide relevant information regarding availability and eligibility requirements for grants, loans, and scholarships.
- Check out the company and its offer thoroughly, BEFORE giving them any confidential information about yourself. Call the Division of Consumer Services at 1-800-HELP-FLA (435-7352) to check their complaint history.
- Don't give in to high-pressure sales tactics. Be suspicious of any company that insists you make a quick decision because the offer is “time limited.”
Before you decide to use a financial aid advice service, you should investigate the organization yourself before making any commitment:
- Do a little research, most of the information these “opportunities” offer for a fee is actually available to you for free. Of course they won’t tell you that because they want you to pay them for the information. Ask your local college or university for free resources that are available.
- Use an Internet search engine and enter the name along with the word "scam" – also do some research using their web address. If reputable sources identify it as a scam or illegal activity, it would be wise to look elsewhere!
- Ask for names of three or four local families who have used its services recently. Then call those people and ask questions.
- Ask how many students have used the service and how many of them received scholarships or grants as a result.
- Find out about the service's refund policy, get everything in writing and read all the fine print before signing anything!
A company charging for financial aid advice is not committing fraud unless it doesn't deliver what it promises. For more information about financial aid fraud or to report fraud, call the Federal Trade Commission toll free at 1-877-FTC-HELP (382-4357).
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Federal Trade Commission
According to the Federal Trade Commission, unscrupulous companies guarantee or promise scholarships, grants or fantastic financial aid packages. Many use high pressure sales pitches at seminars where you're required to pay immediately or risk losing out on the "opportunity."
National Consumer's League
It may be a search company that is offering to help locate scholarships for which you may be eligible, rather than a foundation that actually awards scholarships. Most foundations don’t charge a fee to apply for a scholarship; if they do, it is very small. Scholarship search companies always charge for their services.
Better Business Bureau
Billions of dollars worth of scholarships are awarded each year to college-bound students. Some are based on financial need, others are based on a student's interests, academic and extracurricular achievements, ethnicity, religious affiliation or a family's relationship with a certain union, company or other group.
College Board
Scholarships are an attractive way to help manage college costs. Your child won't have to repay them (like loans) or work to maintain them (like work-study). Since students and parents are so eager to find these funds, it's no wonder that they become easy targets for financial aid con artists.
