Every year an estimated 350,000 students and families are victims of scholarship scams, costing more than $5 million annually. Free scholarship money is always great, but sometimes offers are just too good to be true.

When conducting your scholarship search, be on the lookout for these three popular scholarship scams, so

1. Asking for cash up front: If you see a scholarship offer that requires you to send in an application or processing fee, this so-called “scholarship” is almost always a scam. Even if the offer adds a disclosure statement that guarantees a refund, money you send up front is almost never returned. These so-called fees are one of the most popular scams and trap thousands of families every year. Just remember these four words: never pay a fee.

2. Awards without entries: You may have seen ads or emails that promise, “Congratulations! You have just won a $10,000 scholarship to college! To obtain your reward, please send in a $100 processing fee.” These emails are similar to the ones promising your millions if you simply send a fee. If you did not apply for a scholarship or enter in a specific contest for this money, this is probably a scam. Scholarships are rewards for those who do the work, not prizes for doing nothing. If you did not work hard to apply for this scholarship, but it still offers thousands of dollars in cash just for sending in a processing fee, you should not take it seriously.

3. Sweeping promises: Lastly, be aware of scholarship offers that make sweeping claims. If you see an offer that declares any of the following and seems too good to be true, stay away.

• “The scholarship is guaranteed or your money back.” In life, and in the financial assistance realm, nothing is guaranteed. Do not let this line fool you!
• “You can’t get this information anywhere else.” If you can’t get information about this scholarship anywhere else, then chances are it is not legitimate. Scholarship search sites are databases filled with scholarships. If the scholarship isn’t listed on one of these resources, then be very cautious.
• “We guarantee you will win multiple scholarships.” Nobody can guarantee that you will win a scholarship. Most of these claims require you pay a fee upfront.

Students win hundreds of thousands of scholarships each year and they NEVER have to spend money to win them. There are no free rides, however, and it will require some effort on your student’s part. Make sure to always research the scholarship to which you are applying, never send in money, and be cautious of offers that seem too good to be true.

For even more information, turn to the U.S. Department of Education’s Federal Student Aid Office for an excellent article on avoiding scams.