How to Avoid Scholarship Scams: What Every Student Should Know

If you’re applying for scholarships, you’re already taking smart steps toward reducing the cost of college. But unfortunately, not every opportunity out there is legitimate. Scholarship scams are a growing problem, and students eager to find financial aid are often the most vulnerable targets.

Scam tactics have become more sophisticated in recent years, making it harder to tell real scholarships apart from fake ones. Some ask for fees, others request sensitive information, and a few even go so far as to mimic well-known organizations. That’s why it’s so important to know the warning signs and protect yourself. This guide will walk you through how scholarship scams work, how to spot red flags, and where to find safe, reputable sources like those offered by NSHSS.

Why Are Scholarship Scams So Common?

The cost of college continues to rise, and more students than ever are searching online for scholarship opportunities. Scammers take advantage of this urgency, creating fake offers that seem legitimate. Some promise guaranteed money with no effort, while others trick students into paying application fees or sharing financial details.

The truth is, applying for scholarships should never cost money, and no reputable organization guarantees you'll win simply by applying. Scammers prey on stress, hope, and the desire for quick solutions. But with the right information, you can steer clear of these traps and focus on genuine opportunities.

Common Types of Scholarship Scams

There are a few main types of scholarship scams to be aware of. Knowing how they work can help you avoid falling for them:

1. “Guaranteed Award” Scams

These scams claim you’ve already won a scholarship or are “guaranteed” to win if you apply. They often pressure you to act quickly—usually by paying a fee to “secure your award.” No legitimate scholarship guarantees you’ll win anything in exchange for payment or personal details.

2. Fee-Based Applications

Some scams ask you to pay an application or processing fee. Others charge for access to a “secret list” of scholarships. Legitimate scholarships are always free to apply for. If someone’s asking for money upfront, it’s likely a scam.

3. Phishing Scams

These target your personal or financial information under the guise of a scholarship application. They may request your Social Security number, bank account information, or credit card details—none of which should be required for a real scholarship.

4. Fake Scholarship Websites or Organizations

Scammers may create websites that look professional but are completely fake. These sites collect personal information or promote “contests” that don’t exist. Always verify that the organization offering the scholarship is real, well-known, and has a traceable history.

5. “Too Good to Be True” Offers

If an award amount seems unusually high with no effort required, be cautious. Real scholarships—especially large ones—typically have specific eligibility requirements and a clear selection process.

Red Flags to Watch For

To protect yourself from scholarship scams, look out for these warning signs:

• You’re asked to pay money to apply or claim your award

• The application process is unusually vague or fast

• The offer comes via an unsolicited email or social media message

• You can’t find any verifiable contact information or a professional website

• The organization pressures you to act “immediately” or risk losing out

• The scholarship is not listed on any reputable scholarship or educational websites

If something feels off, trust your instincts. It’s always better to research further than to give out personal or financial information too quickly.

What to Do If You Suspect a Scam

If you think you’ve come across a scholarship scam, don’t engage. Close the site, block the sender, and avoid giving any personal data. Then, report it. You can report scholarship scams to:

• The Federal Trade Commission (FTC) at reportfraud.ftc.gov

• Your school’s guidance counselor or financial aid office

• The Better Business Bureau (BBB)

Reporting scams helps protect other students, too. And if you’ve already given sensitive information, alert your bank or credit card company right away and monitor for unusual activity.

Tips to Stay Safe While Applying for Scholarships

1. Stick with Trusted Sources: Use scholarship portals hosted by schools, reputable nonprofit organizations, and well-known platforms like NSHSS. NSHSS provides vetted scholarships and partners with credible organizations to ensure students are supported, not scammed.

2. Research the Organization: Look up the group offering the scholarship. Do they have a history? Are they active on legitimate social channels? Can you contact a real person with questions?

3. Read the Fine Print: Legitimate scholarships include terms, eligibility rules, and deadlines. If a site doesn’t explain how winners are chosen, that’s a red flag.

4. Use a Separate Email Address: Consider setting up a dedicated email address for scholarship applications. This helps protect your personal inbox and makes it easier to track legit opportunities.

5. Keep Your Info Secure: Never share your Social Security number, banking information, or passwords. These are not required for applying to scholarships.

For a full list of application tips and common mistakes to avoid, read the NSHSS blog on navigating the scholarship application process. It’s a helpful guide for both avoiding scams and staying on track with deadlines and submissions.

Safe and Legitimate Scholarships from NSHSS

NSHSS is committed to making sure students have access to safe, transparent, and meaningful scholarship opportunities. From academic achievement awards to scholarships for leadership, volunteerism, and creative pursuits, there are options for every type of student.

When you apply through NSHSS, you can be confident that each scholarship is real, clearly explained, and free to apply for. You can view current open opportunities on the NSHSS scholarships page, where each listing includes eligibility requirements, award amounts, and application instructions.

Find a Scholarship Safely

The search for scholarships should be exciting—not stressful. Unfortunately, scholarship scams are a real and persistent threat, but they’re also easy to avoid if you know what to look for. Remember: a real scholarship will never ask you to pay, rush your decision, or hide behind vague promises.

Stay smart by applying only through verified, trustworthy sources like NSHSS. Use the tips above to protect your personal information, report anything suspicious, and stay focused on the real goal—earning support for your future.

When in doubt, take a pause and do a little research. Your financial future is too important to risk on a scam. With careful planning and the right resources, you can confidently find scholarships that reward your hard work—no strings attached.