Applying to scholarships isn’t as straightforward as we would like and the fact that there are bad actors trying to scam unsuspecting students and parents of their money doesn’t help either.

I definitely understand the anxieties that come with applying and making that leap of faith, but as a seasoned veteran, I can arm you with the knowledge to spot these scams with relative ease.

Related: Want to win scholarships? Check out this article to learn the 25 fool-proof strategies I used to win over $55,000 in scholarships.

Related: Check out this article to learn how you can best protect yourself and your information from scholarship scams.

1. There is an application fee.

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This should be the first red flag and your sirens should be blaring at this point.

If a company requires payment for you to apply or use its scholarship-related services then it’s likely not a legitimate business. Remember, credible sources only offer free services and applications.

2. Offers guarantees.

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Scammers will often entice prospective applicants with guaranteed awards or offer a full refund in the event it doesn’t pan out; however, these are empty promises.

There will likely be a permanent loss of contact with the scammer when it’s time for them to return your money and you’ll be left in the dust. 

3. There is a positive and a negative in the same sentence.

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It is astonishing how well scammers have mastered the art of marketing and the principles of psychology.

The point of introducing a negative followed by a positive is to ingratiate the applicant since it appears the scammer is going out of their way to commit a great deed, but don’t be fooled!

Common examples include: 

• “All you need to do is pay a small fee and we’ll do all the work” 
• “We can guarantee you the scholarship but there’s an advance fee” 
• “We can reserve the scholarship for you but we’ll need your bank/card information first”

4. The scholarship sounds too good to be true.

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Scammers often market a “scholarship” as a once-in-a-lifetime opportunity but that is NOT true! This is a common method used to scam applicants out of their money.

Use common sense: If no work is required on your part, for example, steer clear.

This should make intuitive sense because most scholarships require an essay and some form of documentation so how would they get that from you without your involvement – magic?

There are literally hundreds of thousands of credible scholarships (worth billions of dollars) that are offered every year so don’t waste your time on an off-putting one.

5. Requests your financial information.

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This is another big red flag.

Similar to the first point, no credible organization will ever ask for money so why ask for your financial information in the first place?

Do not, under any circumstance, disclose your credit/debit card information, routing number, social security number (SSN), or any other important information.

6. Limited time offers.

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It amazes me how well scammers are able to use effective marketing skills to get students to buy into their elaborate plot.

Keep in mind that a scholarship is by definition a charitable act so you should never be pressured into buying anything.

7. Fails the “face-value” test.

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How does the website look at face value?

Does it look like something a 10-year-old made (no offense to 10-year-olds)?

Is it glitchy?

Does it have many pop-ups?

If you answered yes to any of the above, then I would tread carefully. These are indicators of a poorly managed website and a financially motivated organization.

8. Scholarship details are not updated.

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Websites with old information could be a sign of an inactive scholarship program. Typically, most organizations will update their website around the time applications reopen the following year.

If you’re unsure, I recommend reaching out directly.

It is important to note that many reputable scholarship organizations rarely change their requirements from year-to-year (e.g., eligibility, deadline, documentation) and may not update it annually since there is no need to.

However, this practice is the exception rather than the rule so keep an eye out. 

9. No recent winners.

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This isn’t necessarily an indication of a scam but rather it could just be a newly established scholarship. Regardless, you should still vet the organization thoroughly to make sure everything checks out.

The problem with new scholarship programs is that virtually anyone can start one without much hassle – it doesn’t require a significant amount of cash and you only need to sign a few papers to be legally recognized as an organization or non-profit.

Only apply to scholarships with high social capital, such as credibility and a good reputation, which takes time to develop. Ultimately, it is much more difficult to build a successful and trustworthy organization than it is to start a new one.

10. No way to contact them.

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All legitimate organizations will have a representative you can communicate with if you have questions or concerns so a disconnected phone number or undeliverable email address is highly unusual and may indicate fraudulent activity.

Many scammers will provide this information on their website to give a false impression that they are operating a legitimate business.

If you can’t get in contact with a person at the organization, move on to another scholarship opportunity.

11. Unsolicited outreach.

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Most organizations do not reach out to prospective applicants directly but instead through formal channels such as high school and college visits.

Be on the lookout for red flags, such as unprofessional email names, grammatical errors, inappropriate messages, and solicitation of payment. Also, be wary of automated phone calls.

Note: Never provide personal or financial information over email or phone! Hang up and block the caller/sender.

Tip: No government agency, such as the Department of Education, will ever leave an automated or threatening voice message or text. Always complete important tasks in-person at a government office (e.g., DMV, postal office).

If the interaction felt like a sales pitch then it probably way. Remember, scholarships are supposed to give YOU money, not the other way around.

12. Requests that you deposit a “scholarship” check.

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In this case, the scammer will have you deposit a real-looking check into your bank account and ask you to return a portion of it to cover fees.

What ends up happening is the check will bounce but by the time you realize something is wrong, you will already have paid them with your own money.

13. You won a scholarship you did not apply for.

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This is a major red flag because if you never applied then how did they get your contact information?

If that doesn’t send chills down your spine then I don’t know what will.

The scammer might as well hold up a “this is a scam, stupid” sign. This is often a ploy to get you to disclose sensitive information, such as bank and card information. 

14. Everyone is eligible.

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This is also a red flag because the point of scholarships is to award a certain type of individual (e.g., veteran, minority, first-generation) with the right credentials (e.g., academic achievement, leadership, community service).

15. Unlisted privacy policy.

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All credible scholarship organizations will have a privacy policy listed on their website because it builds trust among applicants and details exactly how collected data will be handled.

However, if no such policy is in place then honestly anything goes in regards to your data, which could explain why you get so many robocalls.

16. No-essay, sweepstakes, and giveaways.

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This is just my personal preference but I avoid these types of scholarships because it’s just too good to be true and everyone is eligible.

It is basically a lottery ticket – Everyone has a low chance of winning and there is nothing you can do to improve your chances (only one submission allowed).

Oftentimes, this is a way for scammers to collect data from applicants, which they will sell later to third-parties.

Note: One exception is the Dr. Pepper Tuition Giveaway.

17. Heavy-handed sales pitch.

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Scammers will try to get you to attend a “free” seminar to “learn how to get more scholarships” when in reality it’s just a drawn-out sales pitch.

These seminars are typically events where they pressure attendees into purchasing unnecessary products or services they did not need in the first place.

Note: These events are similar to those get-rich-quick YouTube ads where the individual provides generic advice for a few hours.

18. Government endorsement.

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Federal agencies will never give an official endorsement to an outside scholarship program for a number of reasons. So, if an organization makes this claim, you need to be proactive and do your research because odds are it’s a lie.

This is a major red flag because if a scholarship organization is willing to lie about this, then what else are they not being truthful about?

19. They claim to have exclusive access to information.

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Everyone has free access to the same information so there is no point in hiring a scholarship consultant (plus they’re just using Google anyway).

Many applicants turn to these consultants because they falsely assume these “professionals” have some sort of top-secret information or insider knowledge.

All you need is WiFi. I recommend spending about an hour searching for scholarship opportunities on Google – all of the information is there, you just have to find them.