According to the National Association of Student Financial Aid, over 350,000 people are estimated to fall victim to scholarship scams on an annual basis, leading to losses of around $5 million.

The Federal Trade Commission’s Bureau of Consumer Protection has identified warning signs for students and parents to beware of.

Claims of a scholarship being guaranteed or your money back. Irrespective of your qualifications, a scholarship can never be guaranteed.

Information not available anywhere else. There is no dearth of free scholarship resources, both online as well as in local libraries and college career services centers.

Asking for credit card or bank account numbers to book a scholarship. There is never any need to give out credit card and bank account numbers simply to hold a scholarship.

Claiming to do all the work. Nobody but you can do all the work of filling out applications for scholarships and grants.

Charges for a scholarship. Scholarship is meant to be free money that you don’t have to spend a single penny on.

Being chosen by a national foundation for a scholarship or being made a finalist in a contest you never entered. Check the facts to determine whether the foundation or program is legitimate or not. Online degrees info reports:

Great. So along with the pressure of having to come up with money to pay for school and searching for scholarships, I have to worry about being scammed? Unfortunately, yes. The National Association of Student Financial Aid estimates that more than 350,000 people are defrauded by scholarship scams each year, losing some $5 million. Don’t be one of them!