Education Blog

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Every year, without exception, sophisticated swindlers promising to help families qualify for extra financial aid instead swindle them out of large sums of money.

One financial aid organization believes these scammers defraud families out of more than $100 million dollars a year.

Because college costs scare nearly all of us, and because many people do not realize that there is money available to help them send their children to college, these scammers have found it very easy to find and exploit their victims.

It all starts with a letter from a company with a name that makes it sound like a benign organization whose mission is to assist students and their families.

The letter often looks like it comes from a top college or university. Thats not an accident. The font, the grade of paper, and the logo are chosen by the scammers to give the letter an academic look. Its junk mail alright, and its far more malicious than most, but thats not what it looks like. As a result, instead of throwing the letter away, many families open it. Thats mistake number one.

The letters almost always begin by frightening families about the high cost of college.

But, the letter says, we can help. We can show you how to receive more financial aid. In some instances the letters will mention secrets colleges dont want you to know. Sometimes the letters will talk about millions of dollars in “unused” scholarships and financial aid; money just waiting to be found by and given to students who know the ropes.

The letters are not always the same, but one element is. They invite you to come to a hotel function room or other reasonably large venue to learn more about financial aid and scholarships, at no cost. Sounds like a no-brainer, right? If you think so, think again.

The gathering, whatever it is called, is a well rehearsed sales pitch. The gist…you need money, we can help you get it. And, nowhere do you get the one piece of information you need most…everything of value these people can offer you is available elsewhere, for free.

The initial presentation is followed by an individual meeting with a high pressure salesperson who uses a well-formulated approach…like those of the very worst car salespersons…developed to collect up to $2,000 and a signed contract from families before they have had too much time to think about it.

Every year, a new set of potential victims come along. But, you and your family can avoid these masters-of-rip-off by turning to the people who really do have your best interests at heart…school counselors and college financial aid professionals.