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Scholarship Scams

Be careful when searching for information on student financial assistance. Make sure information and offers are legitimate. Don't fall prey to fraud.

Estimates show that families lose millions of dollars to
scholarship fraud every year. The College Scholarship Fraud Prevention Act enhances protections against fraud in student financial assistance. The Federal Trade Commission (FTC) cautions students to look for these telltale lines:
* The scholarship is guaranteed or your money back."
* You can't get this information anywhere else."
* I just need your credit card or bank account number
to hold this scholarship."
* We'll do all the work."
* The scholarship will cost some money."
* You've been selected by a 'national foundation' to
receive a scholarship" or "You're a finalist" in a contest
you never entered.

To file a complaint or for free information call 1-877-FTCHELP
(1-877-382-4357) or visit www.ftc.gov/scholarshipscams

The U.S. Department of Education has the following types of Student Financial Assistance (SFA) programs:
Grants are financial aid you don't have to pay back.
Federal Pell Grants
* Federal Supplemental Educational Opportunity Grants (FSEOGs)
Federal Work-Study - lets you work and earn money while enrolled in a postsecondary institution to help pay for school.
Loans are borrowed money that you must repay with interest.
* Stafford Loans
* Federal Perkins Loans
* PLUS Loans
* Consolidation Loans (for federal student loan repayment only). This loan allows borrowers to simplify loan repayment by combining several types of federal student loans into one loan.
Undergraduates may receive grants, loans, and Federal Work-Study.

Graduate students may receive loans and Federal Work-Study, but not Federal Pell Grants (except, in some cases, for attendance in a post-baccalaureate teacher certification program) or FSEOGs.

Not all schools participate in SFA programs; and those that do might not take part in all programs. To find out which programs (if any) are available at a particular school, contact the financial aid administrator at that school.

Go on to Federal Student Aid Page 3 - Student Eligibility Page 6 - General Information Page 7

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