CHARLOTTE, N.C. — Along with trips to the pool with friends, college-bound students are spending the summer looking for last-minute scholarships. However, there are people waiting in the shadows to take advantage of that need.

What You Need To Know

  • Scholarship ads are popping up on social media feeds ahead of the new school year

  • Fake companies promise students upward of $20,000 in financial aid

  • Rather than an essay, students are asked to send hundreds of dollars in untraceable funds

The Better Business Bureau said it receives multiple reports of scholarship scams every year.

Tom Bartholomy, president and CEO of the BBB, said oftentimes the financial aid offers are unsolicited, popping up on social media feeds. 

“What they want you to do is click on that link, and the game starts,” he said. “What they’re going to be telling you at that point is there’s all this scholarship money, financial aid money available, but there’s an application fee — hundreds of dollars.”

The victims' money for the fee has no problem getting through to the other end, but Bartholomy said the $20,000 to $30,000 in scholarships students were guaranteed in return never shows up. 

“If there’s a price tag up front, that money’s going the wrong way,” he said. “All of a sudden, they’re not available. When you make payment, they don’t want it with a credit card. That really has no use to them, because under federal law, you can have the purchase charge back. So, they’re going to ask you to make that payment with a Zelle or a Venmo or some other type of cash app.”

It leaving the payments untraceable and unretrievable. 

Instead of clicking on the easy route to financial aid, Bartholomy recommended students and parents talk to their school guidance counselor or the financial aid office where they’re pursuing higher education.