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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.
Scholarships help promising students obtain a quality education. A merit scholarship is a type of financial aid that does not have to be paid back and helps individuals pay for the cost of their college education. Merit scholarships are awarded based on a high level of achievement in athletics, academics or the arts, as well as some special interests. National Merit Scholars The National Merit Scholarship Corporation, or NMSC, is a nonprofit entity that grants merit-based scholarships. Many other entities grant merit scholarships in addition to the NMSC although national merit scholars receive a high degree of respect because of the highly competitive nature of the awards. National merit scholars are chosen from over 1.5 million entrants, and after several rounds of qualification, only 8,400 are chosen for the final awards.