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Attorney General Wars Arkansas of Financial Aid Scams

September 02,2010 by: admin

Attorney General Dustin McDaniel issued a warning to the Arkansas community about financial assistance scams. Although there weren’t cases filed yet about the scholarship scams in the office, McDaniel issued the warning anyway.

With summer nearly gone and the students are preparing for a new school year, prices remain to go high and do not exclude the costs for books, school supplies and tuition fees. With this kind of trend, it would be very helpful if parents and students find organizations that would help them get assistance to fund college education. But the problem is, they can are being watched by operators of scam scholarship and financial aid providers.

According to the Federal Trade Commission, a lot of financial assistance companies assure students scholarships, financial aid packages or grants for an upfront fee. The attorney general’s office states that many use high pressure tag lines that would require recipients to pay at once so they won’t be losing the “opportunity”. Some also present a money back guarantee method but add conditions that would make it impossible to claim a refund.

These companies will ask for the recipients’ checking account and take away funds from the accounts without asking the students’ permission. Others would just charge fees to the bank accounts little by little but in a very long time. Many companies who sell scholarship and who are legal charge students for an advance fee, however, they will never guarantee or assure scholarship and funds.

Attorney McDaniel says that scam companies are preying on families and individuals who are searching for ways to finance the growing costs of education. He said that consumers must be alert of any individual or organization presenting a package that sounds too good to be true.

The following are what the Attorney General outlined for parents and students searching for scholarship money and financial assistance:

Parents and students should not be rushed into paying for advanced fees for scholarships and they must stay away from aggressive sales pitches that will have need for an immediate payment.

The students should also inspect or assess the organization they are paying for assistance. A guidance counselor or financial aid advisor are the best persons to talk to before spending the money. Some of them offer assistance for free.

Students and parents should inquire on how much money should be paid, the services being offered and performed and the refund policy of the company. The information must be obtained through writing. It should also be kept in mind that the money paid to a dishonest operator, notwithstanding the terms provided in the refund policy, cannot be returned back to the payor.

Success stories or strange testimonials can be pretty convincing and students should be cautious about these. Instead, students should request for a list of three or more families who have used the services of the organization for the previous year; then proceed to ask each family listed whether they were satisfied with the products and services obtained or not.

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