Discover Scholarship Program Scams That Rob Your Money

The number of students looking for scholarships is increasing due to the increasing costs of college education. The numbers of genuine scholarship programs that provide aid to students at different levels are also increasing. Everyday millions of students search over the internet to look for aid that can help them complete their education. This huge activity has made scholarship scams a very booming business. There are scholarship programs over the internet that are designed to imitate scholarship programs by popular government and private organizations, such programs ask for money on account of different fee without providing any actual scholarships to students. This article will provide you basic information to discover scholarship program that are scams and avoid them.

Scholarships for students are meant to provide aid to students to help them complete their education, so no scholarship provider is ever going to ask for money to apply for scholarships. Scholarship scams that are mostly advertised on the internet ask for different kinds of fee during the application process. First you will be asked to pay application fee and handling charges just to mail you the application form. Once you have submitted the application form you may be asked to pay administration or judgment fee; after which you will be notified that you have not won the scholarship in most cases.

Another type of scholarship scams will inform you after the above mentioned process that you have won the scholarship and ask for a disbursement or redemption fee. You should be alert to such demands because no legitimate scholarship program can ask for money to dispatch scholarship money.

Another trick played by scholarship scams is to ask you for tax. After you are notified that you have won the scholarship, you will be told that the scholarship providers are liable by law to deduct tax at source, so you should pay tax before the money can be disbursed. You should remember that scholarships are normally not taxable unless they contribute towards your living costs. You can contact a qualified tax consultant to know exact consequences of your scholarship program. Legitimate scholarship programs normally deduct tax from the money that will be provided to you rather than asking you to deposit tax.

You should be extremely careful while giving your credit card or debit card information online. Normally no scholarship program is going to ask you for your card or bank details.