Be wary of scholarly 'honors' that cost $$
By SHARON KERR Staff Writer

Beware the .orgs of March. This is the time of year The Jasper Newsboy office is besieged with press releases recognizing scholarly achievements by local students.

One of the oldest organizations, and unquestionably legitimate according to the schools, is the National Merit Scholarship program, which has been in place since 1955. It recognizes about 55,000 students annually. Selection is based on a number of factors including scores from the preliminary Scholastic Aptitude Tests (PSAT). Students do not have to apply or pay a fee; their schools notify them.

There are literally hundreds of organizations with similar names that do mass mailings and telemarketing this time of year. Most have slick websites that claim impressive associations, endorsements and partnerships with educational organizations.

Jasper High School counselor Elizabeth Cook says typically a student or parent will bring in a letter that begins, "You've been selected for the honor of... send "X" amount of money to be included..."

Cook says, "We tell students when they come and ask that typically a company that requires a fee is wanting just that, the money from the fee."

Cook said the schools have also been warned by college admissions people to tell students not to pay for a scholarship search or assistance in filling out forms. Scholarship searches can be conducted online and information is available from school offices and the library for free.

Scholarship scams were so prevalent in the 1990's that the Federal Trade Commission (FTC) looked into the problem and listed offenders at www.ftc.gov. Some went by official-sounding names like the National Scholarship Foundation, National Grant Foundation and College Assistance Services.

The FTC's Project $cholar$cam found eight defendants who fleeced 175,000 victims for $22 million dollars. In 2000, Congress passed The College Scholarship Fraud Prevention Act to curtail the activities of these companies.

Many of the new "honors" organizations skirt the edge of the law by providing an actual service, such as a printing a book, plaque or framed certificate. If you can spare the fee, dues, processing cost or whatever the expense is called, some families may want this memento of their child's achievement.

But if you are looking at the expense of a college education and thinking this is a way to get your student recognized or eligible for financial assistance, you might want to investigate further.

Www.collegeboard.com (CB) says there are tell-tale signs to spot a scam. "If your child hears these lines from a scholarship service, you may be getting duped:

"You can't get this information anywhere else." CB says free lists are available at schools and libraries.

"We'll do all the work." CB says don't be fooled. There is no way around it; your child must apply himself.

"You've been selected by a national foundation" or "You're a finalist" in a contest you never entered. CB says before sending money, check it out and make sure the foundation or program is legitimate.

The CB site goes on to say, "Financial aid consultants advertise their ability to help families through complicated financial aid forms... but (these forms) are relatively simple, and a high school counselor will give you advice for free."

Cook confirmed her JHS office can help, and she says they also offer a free seminar on scholarships and financial aid at the beginning of every school year, usually in October.

CB points out, "There are not really any tricks... Financial aid officers are not trying to hoard money, but give it away. They make funding decisions based on the school's award criteria and funds available. The aid officer is your best ally in the process; no independent service is likely to influence it."

English teacher Sherri Elmer said another wrinkle in "honor recognition" is that teachers and staff receive notification that they have been nominated to be included in an honor roll of educators. For a small fee they can submit their picture, and for a not-so-small price they can purchase copies of the book.

Because of the number of press releases we receive, The Jasper Newsboy's policy is that we will print only those scholastic honors submitted by recognized schools. For example, we will print the dean's list from an accredited college or notices from local school districts, but we will not accept a letter or certificate submitted by an individual.

This is actually the same policy we follow for birth announcements and obituaries; we require the funeral home or the hospital to submit the information; we do not accept notification from an individual or unknown outside agency.

To get free information on consumer issues, visit www.ftc.gov or call 1-877- FTC-HELP (1-877-382-4357), or call the Bureau of Consumer Protection at 202- 326-3719.