Scholarship offers that ask you for money

Warning signs to watch for

The clearest sign is a fee. Legitimate sponsors rarely charge anything to apply, and none should charge a fee to release an award you have won. Be just as careful with any offer that asks for a bank account or card number to hold an award, or that says you won a scholarship you never applied for.

Pressure is another signal. Scammers often set a deadline of a day or two, claim the offer is open to only a few students, or say the money is certain if you pay now. Real programs explain how they choose winners and give you time to read the rules.

Seminars, services and your FAFSA

Some companies invite families to free seminars that end in a sales pitch for paid financial aid help. The FAFSA itself is free at studentaid.gov, and your school's aid office and your high school counselor help with it at no charge. Paying a service does not change the aid you are offered, because the same form and the same rules apply either way.

Keep your StudentAid.gov username and password to yourself, along with your Social Security number and bank details. A real sponsor may ask for your Social Security number once you have been selected and have confirmed who the sponsor is, but never in an unexpected call or text.

Checking a sponsor before you share anything

Search the organization's name along with words like scam or complaint, and look for a physical address, a working phone number and a named contact. Ask your high school counselor or college scholarship office whether they recognize the program. A genuine sponsor is usually glad to explain how winners are chosen.

If you already paid or shared personal details, act quickly. Call your bank to stop the payment or close the account, and change any passwords you gave out. Report the offer to the Federal Trade Commission through its fraud reporting site and to your state attorney general's office.

Your next steps from here

You now have the whole process in hand, from finding sources to reporting an award. Open the tracker you started earlier in this course and add three local scholarships with deadlines in the coming months. Check each sponsor against the warning signs before you begin an application.

Then line up your essay drafts and recommenders for the first deadline, and save your aid office's outside scholarship form where you can find it. A short list worked through steadily is easier to finish well than a long list rushed at the end.