Students Warned Of Financial Aid Scams

Ann McClure's picture

Prospective college students should beware of fee-based sites and sales pitches that promise to secure scholarships and financial aid, the Connecticut Better Business Bureau says.

The pitches may be empty promises, and although the companies sometimes advertise a money-back guarantee, they often fail to deliver that as well, the BBB says.

Howard Schwartz, executive director of the Connecticut BBB, said the outright promise of finding scholarships and financial aid "should be the biggest red flag of all."

He also cautioned that some companies falsely notify students that they're finalists for a scholarship, only to request a fee to be considered further. In some cases, students may not have even applied for the scholarships being offered.

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