Financial aid scams

San Francisco, CA (CollegeToCareers.com) – For many students, college represents a host of new opportunities, a potential career, and a life after high school. For many of the same students, it is sometimes unclear how one should pursue such opportunities.

In the search for these opportunities, many students and their families fall prey to financial aid scams every year. Such malevolent scams rob students and families of money that could be put to other uses, such as tuition costs, book expenses, and other basic overhead for a struggling student.

As a way to keep students on fresher grass, the federal government supplies a few important facts about college education and the financial aid it takes to pay for it.

1. Apply for FAFSA – for free

The Free Application for Federal Student Aid, or FAFSA, enables students to apply for federal grants, loans, and need-based aid by supplying the government with information about themselves and their parents. The important keyword to remember: free.

A number of sites that claim association with FAFSA will request often exorbitant and always unnecessary processing fees. Skip the purported middle-man and submit your FAFSA at www.fafsa.gov.

2. Use the right scholarship sites

Web portals offering to supply scholarships can serve as valuable resources for the student who goes without. Some are free, and some can legally charge processing fees.

These same sites can’t legally guarantee funding or charge processing fees, and then fail to deliver the information. Know your rights before you pay for information you could otherwise find for free, either online or at your local library.

3. Keywords and slogans to watch for

Other companies and individuals who purport to offer aid may make attractive offers that they say will last for a limited time.

Such pledges or promises may suggest that “this limited offer will expire,” or want you to immediately purchase their products, or misrepresent scholarship information that they make available entirely.

Don’t buy into these arrangements. Your best bet is to search online for key phrases like “free scholarships” or other information.

Other resources that will help you avoid financial aid exams include websites for the U.S. Department of Education and even your state education agency. Billions of dollars are available in federal financial aid and private scholarship opportunities, and you need only look to distinguish these possibilities from scams.

Related posts:

1. Fill Out The Financial Aid Application Correctly
2. Financial Aid Tips That Pay For School
3. College Tips For Successful Financial Aid and Scholarships

photo: riosalado.edu

With financial aid being one of the most popular forms of college funding these days, the opportunity for dishonest people to try and play the system for a little bit of extra cash is more prominent today than it has ever been before. This opportunity was just too good to be true for 64 people in Phoenix, Arizona that are now being brought up on charges.

Over $500,000 was involved in this particular financial aid fraud case.

In fact, this was the most defendants ever seen in court being charged as part of a financial aid scam. It goes to show that even though financial aid is easier to get today than it used to be, the government is still going to be there protecting the money that taxpayers have provided for college funding.

This scam consisted of students acting as students of Rio Salado College. However, none of these students would ever plan on attending this college. False financial aid applications would be submitted, thus making the college authorize the financial aid distribution to these bogus students.

This happened between July 2006 and October 2007. It’s quite a bit longer than we’d expect the government to catch something this big, but they finally did.

Sentences being handed out to each of the 64 defendants charged.

Sentences ranging from house arrest and fines to several years and prison with a half million dollars being ordered to be paid back to the US government are being handed out. While we’re not at the completion of this case, sentencing for this financial aid scam should be wrapped up pretty quickly.

No matter how bad times are, this is something that shouldn’t even be considered. Financial aid is there for the students who are willing to pursue their education with it, not people just wanting to stick the money in their pocket and walk away without even attending the first day of college. If you get caught performing any form of financial aid fraud, be ready to face some stiff punishment.

For more on this financial aid scam, visit KVOA.com.

Related posts:

1. New Jersey Students See Lower Financial Aid Payouts
2. Avoiding Financial Aid Scams
3. Budget Battles Slash Financial Aid