Financial Aid Fraud

TITLE: FINANCIAL AID FRAUD 8-00-17 (Three Part Version)

ANCHOR LEAD

PAYING FOR COLLEGE…IT'S A REAL CHALLENGE FOR MANY PARENTS AND STUDENTS. SO THEY OFTEN JUMP AT THE CHANCE TO APPLY FOR SCHOLARSHIPS. THE PROBLEM IS…NOT ALL FINANCIAL AID OFFERS ARE LEGITIMATE. EVERY YEAR, SEVERAL HUNDRED THOUSAND FAMILIES ARE RIPPED OFF BY SCHOLARSHIP SCAMS. CON ARTISTS REACH THESE UNSUSPECTING VICTIMS THROUGH ADS IN COLLEGE NEWSPAPERS, FLYERS, MAILINGS AND THE INTERNET. _________ SHOWS US HOW TO RECOGNIZE SCHOLARSHIP FRAUD.

#1 Length :40

WRAP ONE Length :11
IF OFFERS OF "FREE MONEY FOR COLLEGE" SOUND TOO GOOD TO BE TRUE…THEY PROBABLY ARE. COLLEGE STUDENT JASON HIBBETS LEARNED THAT THE HARD WAY AFTER ANSWERING AN AD IN THE STUDENT NEWSPAPER AT NORTH CAROLINA STATE UNIVERSITY.

ACT :Jason Hibbets, Scholarship Scam Victim Length :07
"They guarantee you $1,500 worth of grant scholarships and awards or they'll pay for that."

WRAP TWO Length: 15
NOT ONLY DID THEY NOT PAY THE $1,500…BUT JASON ENDED UP LOSING THE 96-DOLLAR APPLICATION FEE... AND SEVERAL HUNDRED DOLLARS MORE. COLLEGE FINANCIAL AID OFFICIALS SAY THEY SEE MOST SCAMS AROUND THE TIME PEOPLE APPLY TO SCHOOLS-NORMALLY FEBRUARY OR MARCH.

ACT :Financial Assistance Director Length :02
"I'd say we'll have one a week."

WRAP THREE Length : 04
WHEN WE RETURN…HOW TO TELL A REPUTABLE SCHOLARSHIP FROM A PHONY ONE

# 2 Length :49

WRAP FOUR Length:07
EACH YEAR, THE FEDERAL TRADE COMMISSION SHUTS DOWN MANY BOGUS SCHOLARSHIP PROGRAMS. THE F-T-C'S DANA LESEMANN ("LESS-muhn") RECALLS ONE.

ACT : Dana Lesemann, Attorney, FTC Length :08
"They would scam students and parents to the tune of $179 dollars each. And over 18 months, they took in over 3 million dollars."

WRAP FIVE Length :04
A PHONY SCHOLARSHIP OFFER OFTEN BEGINS WITH A FAST-TALKING SALESMAN.

ACT :Dana Lesemann, Attorney, FTC Length :11
"They'll wait a few seconds and say 'that's great. We have a scholarship here for Johnny. Now all I need is $179 to hold that scholarship, and as soon as I get your card, I'll put you in the system."

WRAP SIX Length:18
BUT OF COURSE, YOU'RE NOT PUT IN ANY SYSTEM. THE PROBLEM HAS BECOME SO COMMON, CONGRESS HAS GOTTEN INTO THE ACT WITH THE COLLEGE SCHOLARSHIP FRAUD PREVENTION ACT OF 1999, DESIGNED TO INCREASE PENALTIES FOR SCAMMERS AND GET MORE INFORMATION TO CONSUMERS. IN A MOMENT…TIPS FROM THE F-T-C ON RECOGNIZING SCAMS.

#3 Length :39

WRAP SEVEN Length :22
HOW DO YOU KNOW IF YOU'RE DEALING WITH A SCHOLARSHIP SCAM? IF YOU HEAR THE WORDS "GUARANTEED OR YOUR MONEY BACK."IF THE COMPANY SAYS YOU CAN'T GET THIS INFORMATION ANYWHERE ELSE… IF THEY CHARGE A FEE FOR INFORMATION OR SAY YOU'VE WON A CONTEST THAT YOU DON'T REMEMBER ENTERING.SCHOLARSHIP SCAM VICTIM JASON HIBBETS WENT AFTER THE BROKER WHO SCAMMED HIM. HE SAYS HE LEARNED AN EXPENSIVE LESSON.

ACT :Jason Hibbets, Scholarship Scam Victim Length :04
"…I'm never going to give my checking account number over the phone anymore or to anyone."

WRAP EIGHT Length :13
THE F-T-C IS ALSO GOING AFTER INTERNET SCHOLARSHIP COME-ONS. THEY RECENTLY WARNED 37 OPERATORS OF WEB-BASED SCHOLARSHIP PROGRAMS TO MODIFY THEIR PROMOTIONAL LANGUAGE OR FACE LEGAL ACTION.

WRAP NINE Length :
Local Talent Wrap

LOCAL ANCHOR LOCKOUT

FOR MORE INFORMATION ON SCHOLARSHIP SCAMS OR TO REPORT A SCAM, YOU CAN VISIT THE FEDERAL TRADE COMMISSION'S WEB SITE AT www.ftc.gov. YOU CAN ALSO CALL THE NATIONAL FRAUD INFORMATION CENTER AT 1-800-876-7060. AND ONE MORE TIP-- IF YOU WANT HONEST HELP TRACKING DOWN SCHOLARSHIPS... TURN TO THE COLLEGE YOU WANT TO GO TO. AFTER ALL... THEY'RE MOTIVATED TO HAVE YOU GET MONEY SO YOU CAN ATTEND THEIR SCHOOL.

TITLE: FINANCIAL AID FRAUD 8-00-17A (Single Part Version)

ANCHOR LEAD

PAYING FOR COLLEGE…IT'S A REAL CHALLENGE FOR MANY PARENTS AND STUDENTS. SO THEY OFTEN JUMP AT THE CHANCE TO APPLY FOR SCHOLARSHIPS. THE PROBLEM IS…NOT ALL FINANCIAL AID OFFERS ARE LEGITIMATE. EVERY YEAR, SEVERAL HUNDRED THOUSAND FAMILIES ARE RIPPED OFF BY SCHOLARSHIP FRAUDS. CON ARTISTS REACH THESE UNSUSPECTING VICTIMS THROUGH ADS IN COLLEGE NEWSPAPERS, FLYERS, MAILINGS AND THE INTERNET. _________ SHOWS US HOW TO RECOGNIZE SCHOLARSHIP SCAMS.

WRAP ONE Length :12
IF OFFERS OF "FREE MONEY FOR COLLEGE" SOUND TOO GOOD TO BE TRUE…THEY PROBABLY ARE. COLLEGE STUDENT JASON HIBBETS LEARNED THAT AFTER ANSWERING AN AD IN THE STUDENT NEWSPAPER AT NORTH CAROLINA STATE UNIVERSITY.

ACT :Jason Hibbets, Scholarship Scam Victim Length :07
"They guarantee you $1,500 worth of grant scholarships and awards or they'll pay for that."

WRAP TWO Length: 20
NOT ONLY DID THEY NOT PAY THE $1,500…BUT JASON ENDED UP LOSING THE 96-DOLLAR APPLICATION FEE... AND SEVERAL HUNDRED DOLLARS MORE. EACH YEAR, THE FEDERAL TRADE COMMISSION SHUTS DOWN MANY BOGUS SCHOLARSHIP PROGRAMS. THE F-T-C'S DANA LESEMANN ("LESS-muhn") RECALLS ONE THAT NETTED 3 MILLION DOLLARS IN JUST 18 MONTHS. THE PITCH IS CONVINCING.

WRAP THREE Length :22
SO HOW DO YOU KNOW IF YOU'RE DEALING WITH A SCHOLARSHIP SCAM? IF YOU HEAR THE WORDS "GURANTEED OR YOUR MONEY BACK". …IF THE COMPANY SAYS YOU CAN'T GET THIS INFORMATION ANYWHERE ELSE…IF THEY CLAIM YOU WON A CONTEST, BUT YOU DON'T REMEMBER ENTERING ONE…AND IF THEY CHARGE A FEE FOR INFORMATION….JASON HIBBETS WENT AFTER THE BROKER WHO SCAMMED HIM…AND HE LEARNED A LESSON.

ACT :Jason Hibbets, Scholarship Scam Victim Length :06
"…I'm never going to give my checking account number over the phone anymore to anyone."

WRAP FOUR
Local Talent Wrap

LOCAL ANCHOR LOCKOUT

THE INTERNET IS ALSO FILLED WITH SCHOLARSHIP COME-ONS. THE F-T-C RECENTLY WARNED 37 OPERATORS OF WEB-BASED SCHOLARSHIP PROGRAMS TO MODIFY THEIR PROMOTIONAL LANGUAGE OR FACE LEGAL ACTION. FOR MORE INFORMATION ON SCHOLARSHIP SCAMS OR TO REPORT A SCAM, YOU CAN VISIT THE FEDERAL TRADE COMMISSION'S WEB SITE AT www.ftc.gov. YOU CAN ALSO CALL THE NATIONAL FRAUD INFORMATION CENTER AT 1-800-876-7060

Contacts:

Jason Hibbets
Student
North Carolina State University
Raleigh, NC
919-512-7705 J

ason was conned by a scholarship broker during his freshman year, and has had two subsequent drafts on his checking account totaling nearly $300. His guaranteed scholarship never materialized.

Dana Lesemann
Attorney
Federal Trade Commission
Washington DC
Contact Howard Shapiro: 202-326-2176

Ms. Lesemann is an attorney who takes enforcement action against scholarship scams on behalf of the Federal Trade Commission.

Localization Tips:

Interview a financial aid specialist in your area, either private or college based.
Interview a high school senior in search of college money. Talk to the student's parents.
Call your state Attorney General and ask if any scholarship scams have been shutdown in your state.
Ask if the AG's office has received complaints about shady operations located in other states.