In 1996, the FTC initiated Project Scholarship Scam, a nationwide crackdown on fraudulent scholarship search services. I am particularly pleased about the accessibility of information on scholarship scams on the Federal Trade Commission s web site, and I look forward to hearing from the FTC on its efforts to deal with this problem. Private organizations have also joined the effort. Unfortunately, their efforts are not enough to deter scholarship scam artists. This fraud must stop.
Students have a right to dream of a college education without worrying about fraud and abuse.
We must increase awareness of such fraud, protect students from scam artists, and deter future criminals. I am pleased that this legislation will protect students by requiring the Department of Education to create a web-site of legitimate sources of scholarship information. It would further require Department of Education to coordinate with the Federal Trade Commission in compiling this list. This legislation will protect against fraudulent organizations being listed on the site. The web site will hit the ground running since the FTC has already begun the awareness campaign on their site.