How to Find College Scholarships (and Spot the Scams)

Scholarships are one of the few parts of college planning where a few hours of organized effort can pay off, and one of the few where families are routinely targeted by scams. The rule that protects you from most of them is simple: you should never have to pay to apply for a scholarship or to find one.

Where real scholarships come from

• The colleges themselves. Many schools award merit scholarships based on your application, sometimes automatically, sometimes with a separate form. Check each school's financial aid or scholarship page, and note the deadlines, which can be earlier than the admission deadline.
• Your state. Many states fund scholarships or grants for residents attending in-state schools. Search your state's higher-education agency.
• Your school counselor. Counselors often keep lists of local awards that never show up in big databases and have fewer applicants.
• Community organizations. Local clubs, religious groups, civic organizations, and community foundations frequently run scholarships.
• Employers and professional associations. A parent's employer, a union, or an association connected to your intended field may offer awards.
• National programs. Large corporate and nonprofit scholarships exist, but they draw many applicants. They are worth a few applications, not your whole strategy.

How to organize a search that doesn't take over your life

1. Start with the colleges on your list and ask what each offers.
2. Add your state and local options through your counselor.
3. Use a free scholarship search tool, but create a separate email address for it, since sign-ups can generate a lot of mail.
4. Build a spreadsheet: name, sponsor, deadline, requirements, essay needed, and submitted date.
5. Reuse essays when prompts overlap. One strong essay about a challenge, goal, or experience can be adapted to several applications.

Smaller, local awards are often easier to win because fewer people apply. Several of them together can add up to something meaningful.

The warning signs of a scholarship scam

The Federal Trade Commission and many college financial aid offices describe the same patterns. Be suspicious if you see any of these:

• You have to pay a fee to apply, to have your application "processed," or to receive an award. Scammers use names like application fee, processing fee, or insurance fee.
• The offer guarantees you will win, or promises your money back. No legitimate sponsor can guarantee an award.
• You are told the information is exclusive and cannot be found anywhere else.
• You are asked for a credit card, bank account, or Social Security number to hold or release an award.
• You won a contest you never entered. Real awards require an application.
• The materials are sloppy, with typos, no real contact information, or a free email address instead of an organization's own.
• You are pressured to act immediately or told an offer will expire in hours.

Several of these signs together should end the conversation. One sign alone is not proof, but it is a reason to check the sponsor independently, for example by contacting your counselor or the school's financial aid office.

The FAFSA is free

Another common scam charges families to complete the Free Application for Federal Student Aid. The form, as its name says, is free, and the official place to complete it is StudentAid.gov. Be wary of any website that charges a fee to "help" you file it. Our guide to FAFSA vs. CSS Profile explains the forms and why you may need more than one.

What to do if you think you have been scammed

• Stop communicating and do not send more money or information.
• If you shared financial information, contact your bank or card issuer right away.
• Report it to the Federal Trade Commission at ReportFraud.ftc.gov, and tell your school counselor so other students are warned.

Once you have offers in hand, learn how to compare them in how to read a financial aid award letter. Rules and deadlines change from year to year, so confirm the details with each sponsor before you apply.