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David Colker

The scam: College scholarships made easy

The pitch: "The scholarship is guaranteed or your money back! "

How it works: As students make decisions about higher education, scammers are busy with financial aid schemes. Some legitimate companies offer scholarship database searches and other services. But the Federal Trade Commission has won settlements against fraudsters who guaranteed scholarships and delivered nothing but talk.

The charges: Last year, the FTC won a U. S. District Court order to ban National Student Financial Aid from offering student aid services. The agency charged that the company raked in more than $10 million by falsely promising to obtain better financial aid packages.

Consumer advice: The FTC has a guide to avoiding scholarship scams. The agency doesn't take action against companies that charge fees for information that individuals can find themselves. There must be unfulfilled promises and misrepresentations in a pitch for it to be deemed possibly illegal.

Information: www. ftc. gov/bcp/conline/edcams/scholarship/index.