Schemes, Scams, Frauds.
www.crimes-of-persuasion.com Site Directory |
Scholarship Fraud and Diploma MillsDegree and Diploma Mills UNIVERSITY DIPLOMAS Career advancement is, in many instances, tied to educational or degree credentials. Fraudulent operators seize opportunities based on this and open study-at-home courses or set up schools that are not accredited. The scammer will claim that his or her school is accredited and that the degrees or certificates are bona fide then ask students to pay tuition in advance. In some cases, the classes provide poor resources and opportunities for study, while in other frauds, the operator takes the advance tuition payment and flees without ever opening a school at all. The state of Louisiana shut down Columbia State University and Cambridge State University, home-study programs that many people have poured money into. They were a fraud, with phony accreditations and mail drops for a campus which awarded PhDs for those willing to spend several thousand dollars. Such scams are trapping unsuspecting people who are trying to better themselves or add to their resumes through educational offers which feature 27-day degrees and even give college credit for such "life experiences" as playing golf. One current example can be viewed at advancedu.org U N I V E R S I T Y D I P L O M A S Scholarship Frauds Need money for college? Doesn’t everybody? With tuition bills skyrocketing, and room and board going through the roof, students and their families are looking for creative ways to finance a college education. Unfortunately, in their efforts to pay the bills, many of them are falling prey to scholarship and financial aid scams. "The scholarship is guaranteed or your money back." "You can’t get this information anywhere else." "I just need your credit card or bank account number to hold this scholarship." "You’ve been selected" by a "national foundation" to receive a scholarship." " Every year tens of millions of scholarship dollars go unclaimed and unused simply because students do not know where or how to apply." One company using the name of the "non-profit" entity, the National Grant Foundation took lists containing the names of high school and college students, and mailed more than 1.6 million pieces of mail advertising their college scholarship services to the students’ parents. The front of the postcard has the statement "URGENT SCHOLARSHIP NOTICE", followed by an "invitation number". The back of the postcard states:
Stressing the legitimacy of their operation, they emphasize that NGF is a "non-profit corporation" that is in business simply to help students "get their fair share" of scholarship money. When you call their toll-free number, they tell you that in exchange for an up-front fee of $179 they can provide your child with access to grant and scholarship funds maintained by large private companies. They emphasize that the grants and scholarships do not have to be repaid. They assure you that they will find funding for you through scholarship sources carefully matched to the needs and qualifications of your child. You are told that your child merely has to sign and send in letters prepared by them and they will receive their scholarship money. They "guarantee" you that your child will get at least $1,000 in scholarships or grants or they will refund the $179 fee. They conclude their pitches by asking you to provide them with your checking account or credit card number to "hold your place" in their scholarship program. They explain that scholarship deadlines are passing every day and the sooner you pay their fee, the sooner your child will get their fair share of scholarship money. If you specifically request a copy of their refund policy, they send a letter stating that if your child does not receive at least $1000 in scholarships or grants, within one year of becoming a client, the National Grant Foundation will refund your entire processing fee. Once you pay your fees and complete the applications, you receive address lists of about fifty "sources" for financial aid for which you must apply on your own - without their help, as well as several pre-printed form letters addressed to a number of these sources. You are to send these form letters to the scholarship source to request an application for any scholarship or grant offered. The list that they provide contains a large number of scholarships awarded by the very college or university the student attends, or scholarships awarded by the students’ state or local government —not private or corporate sources of "free" financial aid. Many of the "sources" that they represent as scholarships or grants are actually contests, loans, or work-study programs. Frequently, the sources listed do not exist, have expired deadlines, or are not suitable for the student. An example might be a "black-Baptist-female" scholarship for a "white-Jewish-male" applicant. Students seeking refunds have to apply in writing to each source on the list and must provide rejection letters; a virtually impossible task. Even then, those who do comply do not receive refunds. The offer, that $1000 is guaranteed in aid or your money back, includes any offsetting loans you get, even if they had nothing to do with your child receiving it. Some outfits provide nothing for the advance fee - not even a list of potential sources; still others tell students they’ve been selected as "finalists" for awards that require an up-front fee. In a devious effort to get you to divulge sensitive data they may say that "to be considered" or to "confirm eligibility" you must send your tax return and other financial information. Then they debit your accounts without your consent or steal your identity. Other companies quote only a relatively small "monthly" or "weekly" fee and then ask for authorization to debit your checking account, for an undetermined length of time. Many legitimate companies advertise that they can get you access to, or lists of, scholarship opportunities then compare a student's profile in exchange for an advance fee. The difference being that legitimate companies never guarantee or promise scholarships or grants. Even with a "Federal" or a "Foundation" in its name you should determine whether it’s a search company or an actual foundation offering money. Real scholarship offers may charge $5-10 for processing an application but no guarantees are offered. It’s best to get all terms in writing and to avoid verbal promises. Scholarship information is readily available free on the web, in libraries and at your child's high school counseling office or the financial aid office of the college they wish to attend. College Parents of America is a resource, advisor and advocate working on behalf of the millions of parents of current and future college students throughout the United States. For more information about CPA, call toll free 1-888-256-4627 or visit CPA online at www.collegeparents.org. For more info on this type of scam which costs parents from $10-100 million dollars per year log on to a scam alert at http://www.finaid.org as well as the FTC Project $cholar$cam at www.ftc.gov
|
www.crimes-of-persuasion.com © Crimes of Persuasion 2000 Legal Disclaimer |
Using PAYPAL
