by Carlos Soto, CourseAdvisor

Look on the Internet and you can find countless sources of information on obtaining college scholarships and grants. Many sites will provide information on available grant programs through established sources, such as the United Negro College Fund, Department of Education, or other public benefit organizations. There is, however, a growing number of websites that, for a fee, claim they will provide you with information or sometimes even guaranteed placement in secret or unadvertised college scholarship programs.

These services usually charge between $50 and upwards of $1000. It is really important to understand what these services can actually provide. A few of them can be helpful in locating sources of financial aid for students who meet specific requirements such as ethnicity, academic achievement, religious affiliation, athletic or artistic talents, planned career path, or proposed field of study. Keep in mind that the awards from these sources are limited and not everyone that applies will receive funds for a college scholarship.

Possible scam tips to watch out for:

• When a service claims that there are millions of dollars in student aid that go unclaimed every year. These figures usually represent an estimate of national total employee benefits or member benefits. Most of the time, these awards are actually available only to employees and the families of a specific company, or to the members of a specific union or organization.

  When the college scholarship service claims that you can't find this information anywhere else. Most of the time, you could have found this information for free through some independent research at your school, library, state education agency or on the internet.

• If the service asks for your credit card number or bank account info to hold financial aid for you. First of all, be weary of any organization that asks for this information up front. Second, in most cases, search services do not provide awards directly to students, apply on behalf of them, or disburse funds in the name of a financial aid provider. Never give out credit card or bank account information unless you are 100% certain that the organization you are providing it to is legitimate.
• If the college scholarship services try to get money from you by telling you that you are a finalist in a college scholarship contest. In reality, most financial aid sources operate under set deadlines and application criteria, and are generally not run like sweepstakes or raffles.

Here are a few suggestions for researching a college scholarship service. Before you commit:

• Ask the service for the name and contact info of a few local families you can use as references.
• Ask how many students have used the service and what scholarships they received as a result.
• Ask about their refund or customer satisfaction policy.
• Get everything in writing.
• Make sure you read EVERYTHING, especially the fine print.

There is a lot of money available for college scholarships. Most of it comes from the U.S. Federal Government, but there is also aid available through many non-profits. Look in the right places and you can be sure you will find the help you need.

Source:
"Funding Education Beyond High School," Guide to Federal Student Aid, 2007-2008, U.S. Department of Education, Federal Student Aid (http://studentaid.ed.gov/)

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Carlos Soto is a Content Editor at CourseAdvisor.