Real scholarships don’t charge fees, and nobody needs your bank details to hold one. Scammers count on families being too busy to notice.
Key numbers
- You shouldn’t have to pay to apply for a scholarship or to file the FAFSA.
- Guarantees, ‘exclusive’ information and requests for bank or card details are classic warning signs.
- Unsolicited notices that you’re a finalist in a contest you never entered are usually bait.
- Free, legitimate scholarship searches exist; report scams to the FTC and your state attorney general.
Every year, families looking for help paying for college are targeted by companies selling scholarship “guarantees,” fake grants and paid help with free government forms. The Federal Trade Commission has warned about these schemes for decades.
Warning signs
The FTC lists several lines that should make you stop:
- A guarantee that you’ll win a scholarship, or your money back.
- “Exclusive” information you supposedly can’t get anywhere else.
- A request for a credit card or bank account number to “hold” a scholarship or pay a fee.
- An offer to do all the work for a price.
- A notice that you’ve been selected by a “national foundation” or are a finalist in a contest you never entered.
- Any scholarship that costs money to apply for or receive.
Other schemes to watch for
| Scheme | What happens |
|---|---|
| “Free” financial aid seminars | A presentation that ends in a high-pressure pitch for expensive paid services |
| Paid FAFSA filing | Fees for a form that’s free at StudentAid.gov, sometimes with your login handed over |
| Fake grant phone calls | A caller says you’ve won a government grant but must pay a processing fee first |
| Loan forgiveness “help” | Upfront fees to enroll you in federal repayment or forgiveness programs you can join free |
Watch out
Never share your StudentAid.gov username and password. A company with your login can change your contact details, redirect communications and make changes to your federal student loans.
Where to find real scholarships free
- Your college’s financial aid office, which knows about institutional and local awards.
- Your state’s higher education or grant agency.
- High school counselors and community organizations, such as employers, unions, religious and civic groups.
- The U.S. Department of Labor’s free scholarship finder on CareerOneStop.
If you’ve been targeted
Stop payments if you can, keep records, and report the company to the FTC at ReportFraud.ftc.gov and to your state attorney general. If you paid by card, contact the issuer about a dispute.
The best protection is knowing the real process: start with the FAFSA, step by step, and if you’re dealing with loans, see how the new federal repayment plan works.
Questions families ask
Are paid scholarship search services always scams?
Not always, but they rarely offer anything you can’t find free through your school, your state’s grant agency or the Department of Labor’s free scholarship finder.
Someone offered to file my FAFSA for a fee. Is that legal?
Some paid FAFSA preparers operate legally, but the FAFSA is free and designed to be completed on your own. Never share your StudentAid.gov login with anyone.
What about student loan forgiveness offers?
Companies that charge upfront fees to enroll you in federal programs are a common scam. Everything they offer can be done free through StudentAid.gov or your loan servicer.
Award amounts, loan limits and tax rules change, and some 2026 rules are still being finalized. This guide is general information for U.S. students and families, not financial or tax advice; confirm details at StudentAid.gov, with the IRS or with your school’s financial aid office.
