A Degree of Care

It looks like college money at your fingertips--but don’t grab too quickly.

Scholarship information and databanks are increasingly going online, making the cumbersome search for financial aid a little more convenient and efficient. What looks easy, though, may be a rip-off, Federal Trade Commission investigators warn.

Students and educators agree that going online can be a fast way to find out just what resources are available to those pursuing higher education.

“Students tell me they find the Internet more accessible and easier than going to the library and looking through scholarship books,” said Cynthia Martini, a guidance counselor at Sunny Hills High School in Fullerton.

But when promises are made and cash is required, that could mean trouble, experts say.

“If you are paying money to get a scholarship, that’s a red flag,” said attorney Dana Lesemann of the Federal Trade Commission in Washington, D.C.

She advises students and parents to be leery of any service that guarantees to get you scholarships for a fee.

“Don’t trust anyone who promises to ‘do all the work’ to win you college money,” Lesemann said. “A company can promise you scholarship information, but they cannot guarantee you that they will get you scholarship money.”

In the past year, the FTC has filed charges against five companies suspected of defrauding students and parents. Most recently, a U.S. district court found an Atlanta-based company called Career Assistance Planning guilty of bilking consumers of at least $6 million.

The company sent out millions of postcards nationwide, guaranteeing scholarship money for a $299 fee. If the student did not receive at least $1,000 in scholarships, the company promised to refund the fee. But more than 2,500 consumers complained that they received neither scholarship information nor refunds, FTC officials said.

That’s not to say that all Internet information is questionable. Colleges and universities increasingly are promoting themselves by posting their scholarship programs on their Web sites. Federal financial-aid forms also can now be filed by the Internet. And a handful of Web sites list tips on how to apply for loans and grants.

FTC investigators say that the key is to check out all offers thoroughly before sending any money.

Lesemann is even more blunt about subscribing to services over the Internet: “Don’t use it.

“Encryption devices are questionable. You should always be very careful about giving out your credit card number. The Web is an incredibly fast-developing area. It’s just another medium for commerce and for scam artists.”

The FTC cites these Web sites as legitimate resources that can provide helpful information for the college bound:

* The agency’s own Web site, which includes information on scholarship scams and how to avoid them. www.ftc.gov

* A comprehensive Web page by Mark Kantrowitz, author of Guide to Scholarships and Fellowships for Math and Science Students (Prentice Hall). It includes links to grant, scholarship and advisory services. www.finaid.org

* Information on school loans and lenders from Sallie Mae, the national student loan marketing association. www.salliemae.com

* Information from the National Assn. of Student Financial Aid Administrators on how to find money for college. www.nasfaa.org

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Proceed With Caution

The Federal Trade Commission advises students and parents to be wary of scholarship services that make these promises:

1. “This scholarship is guaranteed, or your money back.”

2. “You can’t get this information anywhere else.”

3. “Your credit-card or bank-account number will hold this scholarship for you.”

4. “We’ll do all the work.”

5. “The scholarship will cost some money.”

6. “You’ve been selected by a national foundation to receive a scholarship.”

7. “You’re a finalist” in a contest you never entered.

Source: FTC