Avoiding College Scholarship Fraud
Approx. time: 30 seconds
If you are among the many Americans hoping to secure a college scholarship for your child, beware of a new development: scholarship fraud. Parents may find themselves falling victim to scam artists who cheat them out of their money without securing any scholarship funds for them. In fact, people taken in by scholarship scams lose a total of $100 million annually. The good news, according to the Michigan Association of CPAs, is that there are steps you can take to avoid becoming a victim. First, remember that as a general rule you should not have to pay an application fee to qualify for a college scholarship or an education loan. If fees are required, find out in advance what they cover and when and if refunds are available. Get this information in writing before handing over any money, even a small amount. Remember, too, that a legitimate scholarship program should not require you to divulge your credit card or bank account number or other financial information.
Want to learn more? Your local CPA can offer expert advice on the best ways to pay for those high college tuition payments. Whether you have young children and want to begin planning early or you are looking for ways to cover a teenager’s looming tuition costs, a CPA can help. Consult him or her with questions on any of your family’s financial issues.
