Better Business Bureau (BBB) is urging Burnaby students, parents and guardians to exercise caution when dealing with companies that offer assistance in finding financial aid opportunities.
For students struggling to pay tuition, a sudden offer of a grant or scholarship can look like a dream come true. However, it could be a bait for a scam. Students and their families should be wary of websites, seminars, or other schemes that promise to find scholarships, grants, or financial aid packages for a fee. This con hooks victims with the promise of money, but upfront “fees” never actually materialize into those much-needed tuition funds.
How the Scam Works:
Scammers typically claim to represent the government, a university, or a nonprofit organization. The details vary, but the con is the same. Using words like “National” and “Federal” to sound more official, the scammer will pose as a financial aid representative. They claim you have won a scholarship or a grant (without ever applying) and ask for payment of a one-time "processing fee". In another version, the scammer pressures you into applying for a “guaranteed” scholarship or grant. However, there is a fee to apply. Once the fee is paid, time goes by and the money is never sent.
In yet another variation, a cheque arrives for the scholarship and instructions are included to send back payment for taxes or fees. The cheque turns out to be a fake, and you are out whatever money was sent.
Legitimate companies are helping students find aid with some results. However, students and parents are usually able to find the same awards and others on their own by searching online. Additionally, a prospective college financial aid office can help, especially if it is a college the student is seriously considering.
Tips to Spot this Scam:
It is generally free to apply for scholarships.
Visit the Government of Canada website to learn about financial aid programmes available. Each province has its own support organization and opportunities for financial aid. Each application will be reviewed by the relevant support organization and applicants will be matched with loans, bursaries, and grants for which you appear eligible.
- Beware of unsolicited offers. Typically, it is not possible to win a scholarship or grant if you did not apply. If contacted, ask how the organization got your name and contact information, try to find out what other details they have for you, and then if possible, verify what you have been told with a source outside of the email, phone number or website they used to contact you.
- Take your time. Avoid being rushed or pushed into paying for help at a seminar. Use caution if a representative urges you to pay now to avoid losing an opportunity.
- Ask questions. Be cautious if a company is reluctant to answer questions about the service or the process. If the company or seminar representative is evasive, walk away.
- Check with a college financial aid office. Confirm if anyone has heard of or had any experience with the company.
- Be skeptical of glowing success stories touted on websites or at seminars. Try to find out the name of students and families in your community who have used their services and connect with them to learn about their experience.
Ask about fees associated with a professional financial aid search and find out if the company provides refunds. Get the information in writing, but also keep in mind that dishonest companies may refuse to provide refunds despite stated policies.
