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Looking for Student Aid
without getting scammed

Save Your Money
Save Your Identity
Report Fraud and Identity Theft
Printer-Friendly Fact Sheet
Note to Counselors and Administrators

Save Your Money

Don't Pay for Help to Find Money for College

Commercial financial aid advice services can cost well over $1,000. You might have heard or seen these claims at seminars, over the phone from telemarketers, or online:

  • "Buy now or miss this opportunity." Don't give in to pressure tactics. Remember, the "opportunity" is a chance to pay for information you could find yourself for free. We've provided a list of free sources below.
  • "We guarantee you'll get aid." A company could claim it fulfilled its promise if you were offered student loans or a $200 scholarship. Is that worth a fee of $1,000 or more?
  • "I've got aid for you; give me your credit card or bank account number." Never give out a credit card or bank account number unless you know the organization you are giving it to is legitimate. You could be putting yourself at risk of identity theft. For tips on avoiding identity theft, see "Save Your Identity."
  • "Millions of dollars in aid go unclaimed every year; don't you want some of that money?" The "millions" usually represent an estimated national total of employee benefits or member benefits—available only to the employees or members (and their families) of the companies, unions or other organizations offering the funds. You don't need to pay someone to help you find out whether your parent's company or association offers financial aid!


Still Curious About Financial Aid Advice Services?

Each year, the U.S. Department of Education receives numerous complaints from students and parents who did not receive the information they expected from a private advice service. The Department does not evaluate these services. Before you decide to use a financial aid advice service, you should check its reputation by contacting the Better Business Bureau, a school guidance counselor, or a state attorney general's office. Additionally, investigate the organization yourself before making a commitment:

  • Ask for names of three or four local families who have used its services recently.
  • Ask how many students have used the service and how many of them received scholarships or grants as a result.
  • Find out about the service's refund policy.
  • Get everything in writing.
  • Read all the fine print before signing anything.


Instead, Try These Free Sources of Information:

  • the U.S. Department of Education's Web site
  • the Federal Student Aid Information Center
  • other federal agencies
  • your state education agency
  • a college or career school financial aid office
  • a high school or TRIO counselor
  • your school or public library's reference section
  • FREE online scholarship searches
  • foundations, religious or community organizations, local businesses, or civic groups
  • organizations (including professional associations) related to your field of interest
  • ethnicity-based organizations
  • your employer or your parents' employers


Don't Pay for the FAFSA

Several Web sites offer help filing the Free Application for Federal Student Aid (FAFSA) for a fee. These sites are not affiliated with or endorsed by the U.S. Department of Education. We urge you not to pay these sites for assistance that is provided free elsewhere. The official FAFSA is at www.fafsa.ed.gov, and you can get free help from


If you are asked for your credit card information while filling out the FAFSA online, you are not at the official government site. Remember, the FAFSA site address has .gov in it!

Save Your Identity

Keep Your Information Safe


How Does Identity Theft Happen?

Criminals gain access to personal data such as names, Social Security numbers, and bank and credit card information. Using the stolen data, the criminal can fraudulently obtain credit cards, establish cellular phone accounts, and more.


Reduce Your Risk When Applying for Aid

  • Apply for federal student aid by filling out the FAFSA at www.fafsa.ed.gov.
  • After completing the FAFSA online, exit the application and close the browser; any cookies created during your session will be deleted automatically.
  • Don't tell anyone your Federal Student Aid PIN, even if that person is helping you fill out the FAFSA.
  • Review your financial aid award documents and keep track of the amounts applied for and awarded.
  • Never give personal information over the phone or Internet unless you made the contact. If you have questions about a solicitation or about your student loan account, call 1-800-4-FED-AID.
  • Federal Student Aid securely stores your information on the National Student Loan Data System. However, if you complete or even request a student loan application from a lender, you may be granting the lender permission to access your file. Before providing personal information to an organization, review its privacy policy.
  • Shred receipts and documents with personal information if they are no longer needed.
  • Immediately report all lost or stolen identification to the issuer and to the police, if appropriate.

Report Fraud and Identity Theft

Report Financial Aid Fraud

A company charging for financial aid advice is not committing fraud unless it doesn't deliver what it promises. For more information about financial aid fraud or to report fraud, call the Federal Trade Commission toll free at 1-877-FTC-HELP (1-877-382-4357) or go to www.ftc.gov/scholarshipscams.

Report Identity Theft

If you suspect that your student information has been stolen, it is important to act quickly. These offices will help you determine what steps to take depending on your situation:

U.S. Department of Education
Office of Inspector General Hotline
1-800-MIS-USED (1-800-647-8733)
Complain online

Federal Trade Commission
1-877-IDTHEFT (1-877-438-4338)
Complain online

Printer-Friendly Fact Sheet

You can share the information found on this page by downloading our Save Your Money, Save Your Identity printer-friendly fact sheet or brochure PDF.

Printer-friendly fact sheet—A simple black and white document that prints and photocopies easily.
Brochure—For best results, print in color, and print two-sided so that you can fold it into an easily readable brochure.

Note to Counselors and Administrators

Financial aid fraud has become common enough that, in 2000, the College Scholarship Fraud Prevention Act was passed. The Act states that more people should be aware of scholarship scams and asks the U.S. Department of Education (ED) and the Federal Trade Commission (FTC) to step up our awareness efforts. The FTC continues to prosecute fraudsters and has reprinted its Project $cholar$cam poster and bookmark. ED has updated its publications and this web page. We encourage you to display the poster and distribute the bookmark and our Save Your Money, Save Your Identity brochure to your students.

  • The text for the College Scholarship Fraud Prevention Act of 2000 can be accessed online or downloaded in PDF * (Portable Document Format).
  • To order copies of the Project $cholar$cam poster and/or bookmark, click here.
  • To read the May 2002 press release issued when ED and the FTC delivered the first report to Congress on scholarship scams, and to download the report itself, click here.
  • To read more recent press releases and annual reports to Congress, click on the links below:



  • To order copies of Save Your Money, Save Your Identity call 1-800-4-FED-AID (for single copies). For more than 10 copies, call 1-800-394-7084 or order online at www.FSAPubs.org.

Last updated/reviewed July 09, 2009

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