The Federal Trade Commission (FTC) developed Project $cholar$cam to alert consumers about potential scams and how to recognize them.
Here are the FTC's six basic warning signs:
 | "The scholarship is guaranteed or your money back."-No one can guarantee that they'll get you a grant or a scholarship. Refund policies often have conditions or strings attached. Get refund policies in writing before you pay. |
| "You can't get this information anywhere else."-Check with your school or library before you decide to pay someone to do the work for you. |
| "May I have your credit card or bank account number to hold this scholarship?"-Don't give out your credit card without getting information in writing first. It may be a setup for an unauthorized withdrawal. |
| "We'll do all the work for you."-Don't be fooled. There's no way around it. You must apply for scholarships or grants yourself. |
| "The scholarship will cost some money."-Don't pay anyone who claims to be "holding" a scholarship or grant for you. Free money shouldn't cost a thing. |
| "You've been selected by a national foundation to receive a scholarship" or "You're a finalist" in a contest you never entered.-Before you send money to apply for a scholarship check it out. Make sure the foundation or program is legitimate. |