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Unfortunately, many scholarship scams look and sound like legitimate scholarship opportunities at first. Individuals and organizations suspected of perpetuating scholarship scams are held accountable under the Scholarship Fraud Prevention Act of 2000 and convictions carry stiff financial penalties as well as jail time.
Scholarship Scams. For Students & Parents. The good news is that there are billions of scholarship dollars out there to help you fund college. The bad news is that a lot of shady scholarship offers are designed to take your money, not help you pay for school. Below are 10 common signs that a scholarship isn't legitimate.