Beware of Scholarship Scams!
By Quetzal Mama • August 5, 2013
Beware
of Scholarship Scams!
How to sort
through the good, the bad and the ugly.
Copyright 2016, Roxanne Ocampo
Copyright 2016, Roxanne Ocampo
Since 2010 I’ve been coaching students in their quest to win college scholarships. Through the years I’ve worked with thousands of high school students, and many of them have won regional, state, and national scholarships. With recent spikes in tuition fees and college tuition rising far beyond the rate of inflation for more than a decade, landing scholarships has become essential for many students. In this article, I will discuss how to separate the legitimate scholarship sites versus the marketing engines that prey upon vulnerable students.
When
I begin my scholarship workshops, I remind students they should never pay a fee
to apply for a scholarship! This should
be a red flag. I also advise students not to submit personal,
confidential information about themselves and/or their families on scholarship
sites. There are very few exceptions to
this rule. Some legitimate organizations
that require this type of information include the Hispanic Scholarship Fund and
the Ronald McDonald House Charities.
At
my workshops, I'm frequently asked, “How many scholarship services should I
register with?” I advise students the
same way I advise my own children: “Stay away from scholarship clearinghouses!” What's a scholarship clearinghouse?
Scholarship Clearinghouses: I'm referring to the large online portals that advertise
as a clearinghouse for hundreds or thousands of scholarships. Their website name informs you of the nature of their business.
Their names tend to be very generic, unaffiliated with a particular
program or organization. Rather than
focusing on one particular student demographic or profile, they market to the
masses. For example, these websites
claim to have scholarships for all students. In fact, they will say they have millions, if
not billions of dollars in scholarships.
How do I know this? Aside from the fact I've never known a single student who has won any of these national scholarships from these clearinghouses, there are many red flags to help you spot these clearinghouses:
How do I know this? Aside from the fact I've never known a single student who has won any of these national scholarships from these clearinghouses, there are many red flags to help you spot these clearinghouses:
First clue: Look at their site. The first thing you'll notice is the many paid advertisers prominently
displayed on their home page. This tells
you they're not a charitable organization whose mission is to provide scholarship
funding for deserving students. Instead,
they are a for-profit business and their revenue is generated through
sources such as paid advertisements. They
deal in volume: quantity over
quality. Their strategy is to advertise
a large volume of scholarships in hopes that they may lure a large pool of
“customers” (you).
Second clue is that you must register with their site in order
to view their scholarship listings. All you need to do is register with their service and they'll “match” you up with scholarships that are just right for you! Seems harmless, right? Wrong.
Many of these sites will block the user from moving (or viewing) additional pages until they have registered and supplied their personal information. They may call this process a “registration,” “user account,” or “profile.” However, keep in mind there are legitimate scholarship sites that also require students to create an account. Therefore, you cannot determine whether a scholarship site is legitimate based solely on whether or not you are required to create an account.
Many of these sites will block the user from moving (or viewing) additional pages until they have registered and supplied their personal information. They may call this process a “registration,” “user account,” or “profile.” However, keep in mind there are legitimate scholarship sites that also require students to create an account. Therefore, you cannot determine whether a scholarship site is legitimate based solely on whether or not you are required to create an account.
An example of a legitimate site is the Gates Millenium
Scholars. Notice there are no paid sponsors appearing on their
page. You won’t find catchy gimmicks -- just information directly related to
their annual scholarship program.
Third clue is that these clearinghouse sites will typically have an enticing contest or
sweepstakes, compelling you to register.
For example, they will have a “No Essay Scholarship” or a $10,000
sweepstakes. These lottery-type contests
do not require academic or merit based criteria. Instead, you simply register and submit your
“entry” and you might win the big prize!
Finally
– these clearinghouses typically drive students to product offerings through
clever marketing tactics. For example,
they will broadcast enticing headlines for “helpful articles” covering a myriad
of interesting college-related topics.
Beware! Once you click on that interesting article, you will efficiently
be directed to another page where additional vendors will aggressively market
their product offerings. Some of the
products are student loans, college exam preparation programs, or other
fee-related services. See a great article about the truth of "Lead Generators" published by the National Association for College Admission Counseling.
You
may be wondering why I believe registering with such an organization is disadvantageous
for most students. For one thing, it is
very time consuming. Rather than
spending time on one of these sites developing your “profile” – you can use
that time to build your targeted scholarship database and begin gathering the
required materials. By focusing on a select group of scholarships
you have carefully chosen, you will significantly increase your odds of winning
a scholarship.
The other problem with registering with these sites is that you are often required to submit confidential data. Even if some of the required data does not seem confidential, the combination of information they obtain will yield a “profile” that essentially gives them the same type of information they seek. When you register, you are also agreeing to their terms of use. More often than not, these terms give their “affiliates” access to your personal information for marketing and other purposes. Most importantly, I am not personally aware of a single student who actually won one of these advertised scholarships from these clearinghouses. On the other hand, I know hundreds of students who have won scholarships from independent, authentic, scholarship sources.
The other problem with registering with these sites is that you are often required to submit confidential data. Even if some of the required data does not seem confidential, the combination of information they obtain will yield a “profile” that essentially gives them the same type of information they seek. When you register, you are also agreeing to their terms of use. More often than not, these terms give their “affiliates” access to your personal information for marketing and other purposes. Most importantly, I am not personally aware of a single student who actually won one of these advertised scholarships from these clearinghouses. On the other hand, I know hundreds of students who have won scholarships from independent, authentic, scholarship sources.
Now,
there are exceptions. One such exception
is the Hispanic Scholarship Fund (HSF). Sure,
this organization may have some of the bells and whistles of other
clearinghouses. In addition, they also require
that you complete a “profile” in order to “register” for their scholarships. However, this organization targets a specific
group (Latinos), and they have published criteria and deadlines. Furthermore, I know many students who have
received HSF scholarships, including my own children. HSF is a legitimate site, and I would
encourage students to register with their site.
Why
register with a clearinghouse, when you can invest your time in other activities
that increase your odds of winning. Instead,
students will yield the greatest return on their investment of time by
following these steps:
1. Begin
populating your own personalized database with scholarships and their
deadlines. You can do most of the work
in advance such as collecting letters of recommendation and obtaining
official/sealed transcripts. When the
application period opens, you should only have the task of drafting your
essays.
2. Strategize
your time spent applying to scholarships.
The majority of scholarships open their application period in winter and
close in spring (typically January 1through April 1). This means you can use your winter break to
begin compiling your list of targeted scholarships and gather your documents.
3. Find
organizations that offer a standalone or targeted scholarship for qualifying
students. These organizations will list
their criteria, post an application, and include a specific deadline. Examples of these types of organizations
include the Coca-Cola Scholars, the Chicana/Latina Foundation, and the National
Council of La Raza (to name a few).
4. Increase
your odds by applying to scholarships related to your chosen discipline. For example, if you are an engineering major,
find scholarships targeting engineering students.
5. Increase
your odds by identifying scholarships that are only open to students in your
city, town, region, or state. This will
limit the number of applicants, thus increasing your odds.
6. Increase
your odds by applying to scholarships that require an affiliation. It could be through your parent’s employer – such
as the AT&T Scholarship. Or, if
parents are migrant farm workers, you can apply to the Sunkist
Scholarship. Likewise, if your parents
belong to a fraternal organization you may be eligible to apply. Also consider student organizations such as
the National Honor Society or the California Scholarship Federation.
7. Take
advantage of scholarship databases from trusted sources! For example, Congresswoman Lucille
Roybal-Allard’s office compiles a comprehensive list of scholarships (updated
each year) for students. You can find
her list here: http://roybal-allard.house.gov/uploadedfiles/2012-2013paying-for-college.pdf
8. Always
type in the URL for the desired scholarship website, versus following links
that may take you to a scam site.
9. Finally,
remember to use discretion when submitting personal information such as your
Social Security number, birth date, address, etc. There are very few legitimate scholarship
organizations that require this information to apply.
10. You
can save yourself a lot of time and energy by receiving timely scholarship
notifications from a trusted source:
Quetzal Mama! I have a database
of scholarships I’ve compiled over several years. I have screened the organizations for
authenticity, and I post them on my Facebook page with sufficient time to
gather the appropriate documents and apply before the deadline. Lots of my students have written to me after
winning one of the posted scholarships, so I know this works!
If you'd like more information about LEGITIMATE scholarships, make sure to follow the Quetzal Mama Facebook page! If you'd like to NAIL your scholarship essays, get this low-cost book by Quetzal Mama!
If you'd like more information about LEGITIMATE scholarships, make sure to follow the Quetzal Mama Facebook page! If you'd like to NAIL your scholarship essays, get this low-cost book by Quetzal Mama!