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Beware Of Scams When Seeking College $$$ Aid This is the start of the financial aid season when people should apply for financial aid for college. It is also the time of the year when scholarship scammers start advertising their phony scholarship services. Students and parents are being bombarded by Internet, high school bulletin boards and other come-ons offering scholarships to students who will pay a registration fee, a scholarship matching service that will guarantee a scholarship for a price, a low-interest loan for an up-front fee or a phony free financial aid seminar that is really a sales pitch for insurance or another product. "Students and their parents are vulnerable targets for scholarship scam artists and phony financial planners," said C. Adrienne Rhodes, Acting Chairman and Executive Director for the state Consumer Protection Board. The CPB is investigating firms that allegedly falsified federal student loan applications, resulting in students receiving more aid than they are eligible to receive. Some so-called "scholarship services" pretend that this additional and fraudulent aid is actually a private scholarship that they are providing to students. One Web site uncovered by state agencies charges between $49.99 and $189.99 to fill out a student’s financial aid application. The Web site’s name is nearly identical to the official free government site, www.fafsa.ed.gov, which is the one that should be used. The CPB has discovered another Internet service which requires applicants to fill out a questionnaire that is almost identical to the actual FAFSA application form. Rhodes said the Consumer Protection Board is ready to help parents and students gather information and verify the reputability of scholarship firms. The Consumer Assistance Unit can be reached at 1-800-697-1220 or on the Internet at www.webmaster@consumer.state.ny.us or by writing to them at: 5 Empire State Plaza, Suite 2101, Albany, NY 12223. "You don’t need to pay someone to apply for and receive financial aid for college," said Peter J. Keitel, President of the New York State Higher Education Services Corporation (HESC), the state agency that helps people pay for college by administering the Tuition Assistance Program (TAP) and guaranteeing student loans. "Through the HESC Web site, www.hesc.com, students and families can apply for a student loan, apply for state and federal grants and scholarships, open a college savings account and learn how to claim state income tax deductions," said Keitel. "Until February 16th, HESC and the New York State Financial Aid Administrator’s Association (NYSFAAA) are offering a toll-free hotline, an on-line chat room and free financial aid workshops held at sites across New York where people can receive hands-on help filling out the financial aid forms," said Kevin McGowan, Director of Financial Aid at Hunter College of the City University of New York. People can call the toll-free hotline at 1-800-689-1669 or visit the on-line chat room at www.nysfaaa.org weekdays from 4—8 p.m. and speak directly with a reliable financial aid officer from one of New York’s colleges or universities. The United States government is also working to help students avoid scholarship scams. Last November, the College Scholarship Fraud Prevention Act became law that stiffens penalties for unscrupulous companies posing as scholarship search or financial aid service organizations. The Federal Trade Commission has established a Web site at www.ftc.gov/bcp/on-line/edscams/scholarship/index.html that also helps people identify and avoid scholarship scams. Anyone suspecting waste or fraud in the federal student aid programs can contact the Department of Education’s Office of Inspector General at 1-800-657-8733 or E-mail to oig_hotline@ed.gov. ### Related Financial Aid Web Sites: •New York State Higher Education Services Corporation: www.hesc.com •The College Board: www.collegeboard.org •New York’s Independent Colleges and Universities: www.cicu.org •New York Mentor: www.nymentor.edu •Mapping Your Future: www.mapping_your_future.org •SUNY State University of New York: www.suny.edu •CUNY City University of New York: www.cuny.edu •FastWeb Scholarship Services: http://fastweb.com •FinAid: www.finaid.org
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