SCAM AWARENESSScholarship fee scams
Scholarship fee scams target students and parents trying to pay for college. Scammers promise guaranteed scholarships, grants, or help with financial aid, but only after you pay an application, processing, or service fee. The money disappears, and the scholarship does not exist or is one you could have found for free.
How this scam works
A student gets an email, letter, or social media message saying they were chosen as a finalist or winner for a scholarship they never applied for. Or a company invites the family to a free seminar, then pushes an expensive package that "guarantees" aid. They may claim a money-back guarantee with conditions that make refunds almost impossible.
Some ask for a bank account number to "verify eligibility" or deposit the award, then withdraw money instead. Others charge a fee to fill out the FAFSA, which is free. Once the fee is paid, the company stops responding, or it sends a generic list of scholarships that anyone could find online for free.
What it can look like
EXAMPLE · NOT A REAL MESSAGE"Congratulations! You have been selected as a finalist for the National Achievement Excellence Scholarship worth $5,000. To claim your award, pay the $75 processing fee at [link] by Friday. Unclaimed awards will go to the next student."
Warning signs
- You must pay to apply for or claim a scholarship.
- You won a scholarship you never applied for.
- The offer guarantees you will win money.
- They ask for a bank account or card number to verify eligibility.
- A company charges a fee to fill out the FAFSA.
- A free seminar turns into high-pressure sales for paid help.
How to protect yourself
- Never pay to apply for or receive a scholarship.
- Fill out the FAFSA for free on the official StudentAid.gov site.
- Ask your school counselor or college financial aid office about real scholarships.
- Look up any scholarship sponsor yourself and confirm it is a real organization.
- Never share bank account or Social Security numbers to check eligibility.
- Take your time. Real scholarships do not require a decision on the spot.
If you already responded
- If you paid by card, call your card company using the number on your card and dispute the charge.
- If you shared a bank account number, ask your bank about monitoring or closing the account.
- If you gave your Social Security number, visit IdentityTheft.gov for a recovery plan.
- Stop replying to the sender and keep copies of all messages and receipts.
- Report the scam to the FTC and tell your school's financial aid office.
Get step-by-step recovery help →
Where to report it
Common questions
Is it normal to pay a fee to apply for a scholarship?
No. Legitimate scholarships generally do not charge an application fee. If a program asks you to pay to apply, to claim an award, or to cover processing or taxes before you get the money, treat it as a scam. Real sponsors give money away rather than collecting it from students.
Do I have to pay to fill out the FAFSA?
No. The Free Application for Federal Student Aid is free, as the name says. You can complete it on StudentAid.gov. Your school's financial aid office and many high school counselors will help you with it at no cost. Be wary of websites or services that charge to submit it.
Where can I find real scholarships?
Start with your high school counselor and the financial aid office at the colleges you are considering. Also check with local community groups, employers, and religious or civic organizations. Free scholarship search tools are widely available. You should never have to pay for a list of scholarships.