University of Central Oklahoma
TUESDAY September 16, 1997
The Student Voice Since 1903
Lock and load... The ROTC Ranger Challenge team practices outside the business building Friday. They are preparing for a national competition over fall break. •
(Staff photo by Bryan Terry)
Students target for scholarship scams By Colby Grieser Staff Writer
S
tudents seeking financial aid beware. The Federal Trade Commission (FTC) reports there are many companies offering help with financial aid for students, but with large fees and little result. Students have spent millions of dollars on scholarship scams in the past several years, according to the FTC. The "scholarship scam" businesses charge students between $10 and $400 for assistance in acquiring scholarships, but fail to deliver, according to the FTC. Although the FTC is pursuing scholarship scam companies and has sued eight companies in the past year, many more are still in operation, according to the FTC. Most advertisements for these companies contain false or misleading
information including: • billions/millions of dollars of financial aid goes unclaimed each year, • free financial aid is only a phone call away, • results guaranteed, • money back guaranteed, • they will find under -publicized or hidden scholarships for students. Students at UCO have asked the Scholarship Office about these advertisements, but Margaret Howell, scholarship coordinator said she told them to save their money. "When students bring in these ads, I tell them to put their money in the bank instead of giving it to them, because that's the only scholarship they'll get from these types of businesses," said Howell. One company Howell said she suspects is a scam advertises that "the average
student gets $15,000 in aid with their help." The ad also says students can "get their fair share of the over $52 billion awarded to students each year." When students call the company, they are put on hold. Then a message says the company will tell them when to apply for aid to ensure a scholarship, and they will "show students how to slash or eliminate their school costs" and it's "risk free." When a representative answers the call, they will ask for a name and continue to talk about the numerous benefits students receive from their company such as: how to apply for grant money and get it, how to make the most out of the money they receive and how to fill out the applications for different types of financial aid. The representative then says the only cost to the student is $149, but the student will receive four audio cassettes and a
300-page manual on how to apply for financial aid. The representative also claims that during the 1995-1996 school year, the average award was $15,000, but doesn't say it's mostly loans, said Howell. There is a 30-day money-back guarantee, but a student has to write to a list of contacts for scholarships and grants, then get a response from them within the thirty days to get their $149 back, said Howell. The contacts don't send response letters, so it's impossible for the students to get their money back, said Howell. Students should be aware companies like this do exist, because it isn't obvious when they call that it's a scam. To get more information on scholarship scams contact the scholarship office at 341-2980, Ext. 2637.
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INSIDE TODAY IN DEX Editorial 2 Sports 8 Around Campus ....11 Classifieds 12
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BOOKS Faculty and students express views on banned books
UCO TRACK Mens' and Womens' cross country teams compete
FULBRIGHT foreign study grant application deadline nears
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ULBRIGHT v■MMIALOW.