Beware of Financial Aid Scams

You're worried about paying for college, and the letter that just arrived in your mailbox sounds like an answer to those worries. It's inviting you to a "free" presentation on college financial aid, given by a "financial aid expert" who has helped other families save "thousands of dollars." What could it hurt to attend?

The answer in one word: Plenty.

That's what many families who signed up to attend a free workshop offered by Nichole Buendia discovered. Billing herself as a "financial aid expert" Buendia promised she'd reveal "secrets" to getting more financial aid --- but only for those who paid several hundred dollars for her "private" counseling and who provided detailed personal information to her such as social security numbers and bank account data.

Unfortunately, not only did Buendia not have any experience in college financial aid, according to an article in one Hawaiian newspaper,she used the personal financial information to steal the identity of at least one student. She's since been sued at least ten times in Hawaiian courts for alleged financial misdealing.

Buendia's case is not unique. Every year, I hear from students and parents who are wondering if they should attend similar workshops put on by other "consultants" who have sent them a letter or email from out of the blue promising that they'll get "more financial aid" if they attend a "free seminar." As with all unsolicited mailings, use extreme caution about such offers, and never provide personal financial data to someone unless you are absolutely certain of their credentials.

It's also important to note that there are many reliable free resources available to help students and parents through the college financial aid process. The two best places to get help are your school's counseling office, and the financial aid offices of the colleges where you're applying. Both can be excellent places to ask questions, and get reliable, timely answers. School counseling offices receive updated information on Federal, state and institutional financial aid each year, and many schools sponsor workshops where they invite financial aid officers from local colleges to come discuss financial aid with students and parents. School counseling offices can also point students and parents towards other reputable sources of information. And, don't be shy about calling the financial aid offices of colleges to ask questions either.