Greg's Corner

Student Aid and Housing Scams Surge

By Greg Collier

August marks the beginning of scholarship application season for many students, but it also signals an increase in scams targeting those seeking financial aid. Fraudulent offers often arrive through email, social media, or phone calls, claiming to represent government agencies, universities, or nonprofit organizations. In some cases, students are told they have been awarded a scholarship or grant they never applied for but must pay a processing or application fee before receiving the funds. These offers may use official-sounding names and professional-looking websites to appear legitimate. One recently reported case involved a website designed to mimic the official federal financial aid portal but that requested credit card information to complete an application. The official application process for federal student aid never requires payment.

Similar schemes can be found in the housing market as students prepare for the fall semester. Rental scams are particularly common among younger renters and can be costly. Fraudulent listings often use copied photos and descriptions from legitimate advertisements, replacing the real contact information with that of the scammer. Victims are typically asked to send a deposit and the first month’s rent before seeing the property in person, sometimes with the explanation that the owner is out of town. In other cases, the property in question may actually be for sale rather than for rent. Payments are frequently requested through non-secure methods such as wire transfers or gift cards, which make recovery of lost funds nearly impossible.

Both scholarship and rental scams exploit the urgency and financial pressure that students face at the start of the academic year. While the specific methods vary, the underlying strategy remains the same. Scammers create a false sense of opportunity, push for quick action, and request money in advance. Students can reduce their risk by taking time to verify any offers or listings through official channels, avoiding any that request payment before services are rendered, and seeking assistance from school guidance counselors or financial aid offices.

Conducting a reverse image search on rental photos can help determine whether the images were taken from another listing, and running a web search on the rental property’s address can reveal conflicting or suspicious information. For scholarship opportunities, contacting the sponsoring organization directly and confirming details on its official website can help ensure that the offer is legitimate. Careful research and skepticism can make a significant difference in avoiding financial losses at a time when resources are already stretched thin.