How can I recognize and avoid grant or scholarship scams?
Unfortunately, some services falsely raise people's hopes that "free money" grants are widely available and easy to get, especially for individuals. The old adage holds that, "If it sounds too good to be true, it probably is."
The following advice can help you avoid grant, scholarship, and similar scams.
- Don't pay anyone who claims to be "holding" a scholarship for you. Free money should not cost a thing. Before sending money to apply for a grant or scholarship, make sure the organization is legitimate.
- Be wary of claims that a grant/scholarship is "guaranteed or your money back". Nobody can guarantee you a grant or scholarship. Refund guarantees often have conditions or strings attached.
- Contact the funder directly to verify a funding opportunity and its eligibility requirements.
- Many directories of grants and scholarships are available for free online or at your local libraries. Check these sources before you pay someone to do the work for you.
See also our related Knowledge Base articles:
- What do I do if I suspect that a charity is a fraud?
- Where can I find help with emergency housing costs, medical bills, or personal debt?
More resources for individual grantseekers»
Selected resources below may also be helpful.
Have a question about this topic? Ask us!
Candid's Online Librarian service will answer your questions within two business days.
Ask usExplore resources curated by our staff for this topic:
Staff-recommended websites
-
GRANTS.GOV
Grant Scam & Fraud Alerts
Lists recent fraud alerts and provides guidance on recognizing grant scams.
-
College Board
How to Spot College Scholarship Scams
Offers a quick tutorial on how to identify potential scholarship scams.
-
Peterson's
Identifying College Scholarships Scams
With thousands of college scholarships out there, how do you know if that too-good-to-be-true scholarship is just that? You have to check it out!
-
Staff pick
Better Business Bureau
BBB Tip: Scholarship Scams
Remember: you can't win a scholarship or grant you didn't apply for. Scholarship cons will try to trick you into paying upfront fees to get the money they say you won.
-
Staff pick
Federal Trade Commission
Government Grant Scams
The Federal Trade Commission (FTC), the nation's consumer protection agency, says that "money for nothing" grant offers usually are scams, whether you see them in your local paper or a national magazine, or hear about them on the phone.
-
Staff pick
Consumeraffairs.com
Free Money
Information on why to watch out for the phrase "free money."
-
Staff pick
FTC
Scholarship and Financial Aid Scams
The Federal Trade Commission's (FTC) web site that provides tips and resources for students and parents.
-
Federal Student Aid
Avoiding Student Aid Scams
Avoid scams while searching for scholarships, filling out the FAFSA, and giving personal information to schools and lenders.
-
Bloomberg
Busting the "Free Money" Myth
Describes the persistent myth of "free" government money to start a business.
-
Finaid
Scholarship Scams
Includes a listing of common scholarship scams, information on how to protect yourself from scholarship scams, how to report scams, and how to investigate suspicious offers.