BBB Tips: Financial Aid

While prospective college students await their highly anticipated acceptance letters this spring, they may be starting to think about how they can find financial assistance for their college journey. Some companies offer scholarship opportunities or help finding aid for a fee — but are they really the best option for students?

Most scholarship information is free. Better Business Bureau® (BBB®), which awards a Student of Ethics scholarship, advises students to look into free options, like talking to a high school counselor or researching online, before paying a company to find financial aid opportunities.

Fraudulent companies may promise a money-back guarantee if students are unable to secure grants or scholarships, but they also set so many conditions that it can be impossible to get a refund. Legitimate companies can sometimes help students find aid, but they will not guarantee results.

Students should also be on the lookout for unsolicited scholarship offers – especially those asking for an application fee. Most scholarships are free to apply for.

Some scammers will pretend to be financial aid representatives and use high-pressure tactics to get students to pay a “processing fee” to be eligible for a “guaranteed” scholarship or grant. They may also use a fake scholarship application to get personal or financial information from students.

Finding aid can be stressful, but there are plenty of free resources for students that come from reliable voices like the federal government or university counseling.

Tips for students and their families:

• Check for federal aid first. Students can fill out the Free Application for Federal Student Aid (FAFSA) and find other financial aid resources at studentaid.gov. This is a good starting point for your search.

• Ask trusted sources. Discuss your options with your guidance counselor or financial aid office – they're here to help you! They may recommend scholarships or free resources for finding aid. If you’re considering a paid service, ask them if they have experience with it.

• Take your time. Don’t rush into paying for help at a seminar and be cautious if a company pressures you to buy immediately. There are lots of options for finding financial support, many of them free, so give yourself time to research.