Scholarship scam check

Based on guidance from the Federal Trade Commission and the U.S. Department of Education Office of Inspector General, plus experiences shared in public Reddit threads. General information, not legal advice.

• Never pay an upfront fee (a "processing", "redemption" or application fee) to apply for or receive a scholarship. Legitimate sponsors generally do not charge to apply. (Some real awards ask for an official transcript, which can cost a school fee; that is paid to the school, not to a "service".)
• Never share your FAFSA/FSA ID, bank account or card numbers with a company or consultant.
• Be wary of "you have been selected" for something you did not apply for, guaranteed wins, pressure to act right now, and paid "seminars".
• Apply on the sponsor's own site. If a list points you to a scholarship, search for the sponsor yourself and use its official page.
• Look for real contact information and an organization you can verify. A .org web address alone proves nothing.
• Use free help: your school's financial aid office, the FAFSA (free), your state's aid agency and free career centers.
• If you paid or shared information, report it at ReportFraud.ftc.gov.

Sources

• FTC: How to avoid scholarship and financial aid scams
• U.S. Department of Education OIG: Scholarship scams
• Reddit r/scholarships: How to look out for scams (community experience, not official guidance)

Last verified Oct 17, 2026.