Scholarship Scams and How to Avoid Them

Jun 10
2 min read

Person in a blue shirt appears thoughtful, resting chin on hand, with a neutral background. Expression suggests contemplation or doubt.

Spot and Avoid Scholarship Scams

Many of our clients have recently asked us about scholarship scams, so here's a quick primer on common scams and how to avoid them. When in doubt, ask us and we can help you determine if it's legit!

1. They require a "processing fee" or "application fee"

Red flag: A scholarship application that requires a payment to apply.

Truth: Legitimate scholarships SOMETIMES require application fees, but they should be under $100.

How to Avoid: Only apply to scholarships through trusted sources (e.g., Fastweb, College Board).

2. You "win" a scholarship you didn't apply for

Red flag: A surprise email, call, or letter saying you won money, but you don’t remember applying.

Truth: These are phishing scams or traps to steal personal data.

Avoid: Never give out SSNs, bank info, or pay “release” fees.

3. Fake government aid sites

Red flag: Sites that look official but charge to file FAFSA or promise extra aid. Emails that look like they may be from the federal government but seem a little off.

Truth: FAFSA is free at fafsa.gov. No legit site charges for it. Fill out and submit your FAFSA ONLY on fafsa.gov.

Avoid: Only use official .gov or .edu sites.

4. Essay contests that steal your work

Red flag: An “essay competition” with vague details and no listed judges or sponsors.

Truth: These can be a front to collect essays for content resale or fraud.

Avoid: Stick to well-known contests and check for real terms/conditions.

5. Loan forgiveness scams

Red flag: A company says they can "fast-track" your student loan forgiveness—for a fee.

Truth: Loan forgiveness is done through official government programs, not private firms.

Avoid: Visit studentaid.gov for real info.

6. "Too Good to Be True" Offers

Red flag: Huge scholarships with no eligibility requirements, application steps, or deadlines.

Truth: These are bait-and-switch or phishing scams, and they can look VERY tempting.

Avoid: Look for transparency, deadlines, and requirements. Large scholarships often have a challenging application in order to "weed out" students who don't want to do the work of applying.

Again, if you ever have a question about a potential scam, PLEASE let us know so that we can help you research and alert other clients. Email us at info@kingfisherprep.com with any questions!