What is financial aid student fraud?

Student fraud refers to any situation in which a person falsifies facts in order to be eligible for financial help for academia. Student fraud can take several forms, such as providing false information about one's finances or marital status, or submitting a high school diploma that is not authentic.

It is unadvisable to attempt to commit fraud on a financial aid application. You will be apprehended. Not only will you jeopardize your personal future, but you will also jeopardize the futures of your children. Additionally, you will be denying worthy students of financial aid funding necessary to pay for their education.

Financial aid fraud entails more than simply defrauding the federal and state governments, as well as colleges and universities. Financial aid fraud deprives truly needy students of the financial aid funding they require to attend college, as many financial aid programs are funded on a limited basis. Efforts to combat financial aid fraud may also impede these students' ability to demonstrate their eligibility.

How to avoid scholarship and financial aid scams

Attending college, trade school, or a degree program can frequently assist you in advancing your profession and earning more money - but it can also be costly. Scammers take advantage of this by claiming to be able to assist you in obtaining financial aid or scholarships to cover your educational expenses. In reality, they're attempting to defraud you of your money or private information.

What scammers promise

Scams involving scholarships and financial aid frequently begin with a social media post, email or letter. It may resemble a personalized invitation informing you that you have been accepted for a specific scholarship or financial aid package. Occasionally, a phone number or information about an in-person training at a nearby hotel is included. However, these calls and gatherings are frequently high-pressure sales pitches in which they encourage you to quickly pay for their services — or risk missing out on these "unique" scholarships or financial aid packages.

How to apply for financial aid or a scholarship

As you begin your search for financial help or a scholarship, keep the following steps in mind:

To apply for financial aid, complete the free Financial Aid form. (This is the single most critical action you can take to secure financial help.)

Never pay someone to complete or execute your Financial Aid application. That is almost certainly a fraud.

Discuss your financial assistance and scholarship opportunities with a guidance counselor (if you are in high school) or the financial aid office (if you are in college).

Never pay for a financial assistance or scholarship lecture. Particularly if they attempt to coerce you into paying. That is almost certainly a fraud.

Conduct research before paying someone for assistance with financial aid or scholarships.

Share these suggestions with others who are also in need of financial assistance. You can assist them in avoiding a scam.

What To Do if You Were Scammed

If You Paid a Scammer:

- Did you use a credit card or a debit card to make your purchase or have you made a wire transfer via your bank?

Contact the credit card or debit card company or financial institution that issued the card. Inform them that the charge was fraudulent. Solicit a reversal of the transaction and the return of your funds.

- Is there evidence that a fraudster made an unauthorized withdrawal from your bank account?

Inform your bank that an unauthorized debit or withdrawal occurred. Solicit a reversal of the transaction and the return of your funds.

- Did you use a gift card to make your purchase?

Make contact with the retailer that supplied the gift card.

- Did you make a payment with cryptocurrency?

Inform the company you used to transmit the money that the transaction was fraudulent. If feasible, request that the transaction be reversed.

- Did you send money in cash?

If you send it via mail, call the Postal Inspection Service to request that the package be intercepted.