Financial Aid Fraud Alerts
Have your students been scammed? Help stop financial aid fraud!
The Office of the California Atturney General needs your help to end fraudulent financial aid practices in California. If you believe a student has been a victim of FINANCIAL AID fraud, please file a complaint form
Public Inquiry Unit
Attention: Financial Aid Consulting Scam
Office of the Attorney General
P.O. Box 944255
Sacramento, CA 94244-2550
California Rural Legal Assistance offices are assisting the AG to help students and their families who have experienced financial aid fraud. Visit California Rural Legal Assistance to find an office in your area.
The California Association of Student Financial Aid Administrators, the California Community Colleges Student Financial Aid Administrators Association, the California Student Aid Commission and California Rural Legal Assistance offices have joined California's Attorney General to stop illegal financial aid practices.
Financial Aid Scam Alert
By David Levy (Caltech) and Craig Yamamoto (Sierra College)
As many of you already know, there are fraudulent organizations preying on students and families, typically from non-native English speaking and low income families. They pressure the families to pay a hefty fee to help them find financial aid and complete applications including the Free Application for Federal Student Aid, known as the FAFSA, and offer very little in return. This service is unnecessary for students since the FAFSA application is free and college financial aid offices and other community based organizations provide free assistance.
The California Office of the Attorney General (AG) formed a small working group to gather information in order to investigate financial aid scams operating in California. The representatives include the California Association of Student Financial Aid Administrators (CASFAA), the California Community Colleges Student Financial Aid Administrators Association (CCCSFAAA), the California Student Aid Commission, FinAid.org, California Cash for College, the California Rural Legal Assistance offices and other organizations.
If you are aware of any students who may be victims, we encourage you to forward the information to the Attorney General. You can visit the CASFAA site (www.casfaa.org) to help families obtain and complete the “intake form” prepared for use at California Rural Legal Assistance offices to document the crime and send it to the Public Inquiry Unit at:
Public Inquiry
Unit
Attention: Financial Aid Consulting Scams
Office of the Attorney General
P.O. Box 944255
Sacramento, CA 94244-2550
Phone: (800) 952-5225 / Fax: (916) 323-5341
Website: http://caag.state.ca.us/contact/general.htm
We thank you for your help in assisting any families who may be victims. Please contact us for more information:
David Levy
Director of Financial Aid
Caltech
Phone: (626) 395-6280
Email: davidlevy@finaid.caltech.edu
Craig Yamamoto
Financial Services Manager
Sierra College
Phone: (916) 789-2805
Email: cyamamoto@sierracollege.edu
Beware of Scholarship Scams
The federal government provides the Free Application for Federal Student Aid (FAFSA) as a national form for students applying for financial aid at colleges and universities. As the name implies, the FAFSA is a free form and charging processing fees is prohibited.
California high schools, colleges and universities offer families FREE help to complete the FAFSA. Be cautious of scholarship and financial aid consultant companies that charge you money for their services, including help filling out the FAFSA. The Federal Student Aid Information Center provides a free hotline 1-800-4-FED-AID (1-800-433-3243 or TDD 1-800-730-8913) for questions about the FAFSA and federal student aid.
Here are some tips to protect you:
- If you must pay money to get some money, it might be a scam.
- If it sounds too good to be true, it probably is.
- Spend the time, not the money.
- Never invest more than a postage stamp to get information about scholarships.
- Nobody can guarantee that you'll win a scholarship.
- Legitimate scholarship foundations do not charge application fees.
- If you're suspicious of an offer, it's usually with good reason.
If you think you have been taken by a scholarship scam, contact the Office of the Attorney General.
For More Information, contact:
Public Inquiry Unit
Attention: Financial Aid Consulting Scam
Office of the Attorney General
P.O. Box 944255
Sacramento, CA 94244-2550
