For advance fees of several hundreds dollars, some scholarship firms claim to guarantee awards of thousands of dollars in scholarships and grants or to match students with sources of funding, regardless of qualifications or need. 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 or did not match the students' qualifications. To avoid losing money students and their parents should seek out information from reputable sources. Many services advertised in these fraudulent mailings are available free of charge through high school counseling offices, college financial aid offices or public libraries.
Many schools offer online computer software programs for financial aid.
Many private organizations, foundations, professional clubs and churches also provide legitimate scholarships to students. Qualifying factors may include community activities, membership in organizations, and special talents or skills. If you are interested in using a scholarship service, investigate the background of any unknown company by calling the Better Business Bureau for a reliability report. Ask the company to put all details of its services and promises in writing, including the refund policy. Request the names and addresses of past scholarship recipients and ask those references about their experience and satisfaction with the company.