By STEPHANIE LAN
Although many national companies claim to help students find scholarship money, the Better Business Bureau said otherwise in “Tips for Consumers,” a newsletter issued from the Council of Better Business Bureaus in Arlington, Va.
“They are making you pay for free information,” said Bill Beadle, president of the Better Business Bureau in Utah.
Beadle said businesses will guarantee finding up to $10,000 in funding if students will pay an up-front fee ranging from 12 to hundreds of dollars for their services. The problem comes when the “funding” which students believe will be a scholarship is actually student loans.
In exchange for their fees, students may receive lists of possible scholarship sources. However, some companies do not assist students in obtaining the listed scholarships.
According to the newsletter, some consumers complain that after paying the fee and supplying the necessary information, they never hear from the organization again or are unable to obtain refunds. Others allege the information they were sent arrived too late to meet application deadlines.
“I couldn’t imagine many people getting scholarships,” Beadle said. “These companies give you the same information you could get from a high school counselor or a placement center … that’s all.”
According to Beadle, the most popular marketplace for these businesses are high school seniors because they need money and don’t know how the program really works.
Those who may be interested in similar companies need to take necessary precautions. To avoid being taken, students and their parents should seek out information from reputable sources, the pamphlet said.
The pamphlet also emphasized that high school guidance counselors, college financial aid offices and libraries offer the exact mailings you get from the scholarship companies — but for free.
Many private organizations, foundations, professional clubs and churches also provide legitimate scholarships to students.
If you are interested in using a scholarship service, investigate the background of a company by calling the Better Business Bureau for a reliability report at (801) 487-4300.
