Share
The Office of University Scholarships and Financial Aid recently reported to have been notified of a financial aid scam targeted toward students at Virginia Tech.
According to the financial aid office, students and parents received letters addressed from the College Financial Advisory, a business that the university does not endorse. The letters appear to be from an official financial aid organization, which seems to have acquired personal information on undergraduates from Tech.
The College Financial Advisory requests that enrolled students send in a student aid profile form and $48 to their organization in order to evaluate the student and determin their financial need.
The university has stated that it does not have any relationship with the College Financial Advisory and strongly recommends that students not send personal information.
Barry Simmons, financial aid administration director, could not be reached for comment on the potential financial aid scam.
Research conducted by FinAid, a public organization providing financial aid tips to students, shows that thousands of students and parents nationwide reported collective losses of more than $100 million yearly, a figure attributed to trusting families being swindled initially by companies claiming to be "federal" aid providers.
According to Myrna Cross, a call-center employee with the Federal Student Aid organization, the most common type of financial aid scam involves an illegitimate company posing as the federal government.
"We hear a lot of reports of someone calling and leaving a message, saying they are the government needing you to call them back and give personal information," Cross said. "We will never call you and ask for unsolicited information. As far as the Federal Student Aid is concerned, we will only send you mail, such as your PIN number or your student aid report, if you've requested it by mail."
Though it is easy for students seeking financial aid to fall into the trap of an organization posing as the office of Federal Student Aid, Cross noted that there are several things one can look to for verification.
"Basically, if you have an e-mail from FAFSA@cpsemail.ed.gov, it is from us and legitimate," Cross said. "We don't make calls."
Cross also stated that students should never send their information to anyone but the government.
"If they are in doubt, call our number and we can let them know where they are with their federal aid," Cross said. "If they think they have been victimized, they can call the credit reporting agencies to sort everything out."
Kathleen Kincheloe, the assistant director of communications for the State Council of Higher Education for Virginia, noted that in addition to being aware of a message's source, parents and students who find themselves doubting the credibility of an organization should go through a multi-step process.
"Do research on the financial aid source," Kincheloe said. "Is it their college or university? Is it a reputable national organization? Is it a business in a field you'd like to go into? If they are getting help from a private lender or getting information from a bank, I'd definitely recommend students contact their college and ask if they've had any history with the office before."
Kincheloe added that if a scholarship or financial aid organization asks for money from the student, it is not legitimate.
"You should never have to pay money to get a scholarship," Kincheloe said. "If you're contacted by an agency who says you need to pay to apply for a scholarship, I would seriously question the validity."
For the families who do fall into the trap laid by scamming organizations, their first step should be to contact the Better Business Bureau and credit reporting agencies to inform them of the scam. Once this is done, the fraudulent organization can be red flagged, and the credit agencies can keep an eye out for similar reports.
"My advice to students would be to never divulge financial information over the phone or e-mail until you know who you are speaking to and are sure it's a legitimate request," Kincheloe said.
Leave a comment 28 Comments Write a letter to the editor
All letters to the editor must include a name, e-mail, daytime phone number and affiliation to Virginia Tech. Affiliation includes: year and major for students; position and department for faculty and staff; current city for alumni and parents.
They are still sending out letters. I emailed the school to complain. They did seem to know our name, and what college we are attending.
Reply to this Top
Yes, they are still sending these letters out. I got one this March.
Reply to this Top
My daughter attends UW-LaCrosse and we received a very official looking letter from College Financial Advisory. I checked the web site. It still looked official, so I checked BBB. I'm glad I did. Bottom line, if you have to pay for financial aide it's a scam! Thank you.
Reply to this Top
This is a scam. We where very close to filling it out. Make sure your educational administrators know about this to warn students. Get the word out. Our Daughter was warned about it and this stopped us from being another victim.
Reply to this Top
It's ridiculous that they're still getting away with this. I attend a UW school as well. I had it all filled out, and I was about to mail it out when I decided to look into it, and it's a good thing I did. They were also asking for $59. There has to be something that can be done about this...
Reply to this Top
We just got one for our child at the University of South Florida Tampa. I wondered what a San Diego California operation would be doing for Florida college students - glad I checked and found this website.
Reply to this Top
College itself is turning into a scam. I never went to get a job but feel I paid too much. With interest rates and the enormous loan amounts it's hardly worth it anymore. http://www.thegreatcollegehoax.com
Reply to this Top
My son recently got the same letter and we were getting ready to apply, but I was a little suspicious. I am glad I decided to check on this and with further help from my financial advisor we decided it was a scam.
Now I read your article. Thanks. Isn't there something else that can be done against these thiefs?
Reply to this Top
This college financial advisory is a SCAM! I was reading it and was wandering what it could be, then I saw the part about money, I immediately figured out that it was a scam. And sure enough I was right because look I am checking online and it is. You NEVER have to pay to get financial help for your schooling!
Reply to this Top
I received a letter from CFA this week for my nephew who is in school in SC. I decided to read through it before sending it to him. I am glad I did. When I saw that they were asking for $48 I immediately suspected it was a scam. Don't bother checking out the their website, they'll never reveal that they are fradulent.
Reply to this Top
I received this Financial Aid application in the mail as well. My son is a college freshman who attends a branch of Ohio University. I'm thankful that I decided to check into this prior to sending it in. The $59 fee prompted me to google the name on the letterhead. It would be nice to be able to shut companies like this down.
Reply to this Top
Just got mine today. Freshman at Central Texas College in Killeen, Texas.
Reply to this Top
My daughter just recieved this STUPID letter and thank god for google....just did a little typing and this site is the first thing that came up...PLUS MY DAUGHTER INFORMED ME IT WAS A SCAM, BUT SOMEHOW I DID NOT BELEIVE HER...My goosh...I can't beleive there's so many MEAN PEOPLE in this world...THEY SHOULD BE PUNISHED FOR SCAMMING INNOCENT STUDENTS TRYING TO GET A PROPER EDUCATION....SHAME ON THEM....
Reply to this Top
College Financial Advisory organization is not a SCAM. Unfortunately, any organization that requires a fee in the financial aid circle is immediately categorized as a scam. This is not fair to our organization and we have to constantly educate and inform others about our legitimate and effective establishment.
About College Financial Advisory
College Financial Advisory (CFA) is an independent organization dedicated to assist students to receive available Merit and Need-based financial aid funds. Studies show a large number of students do not apply to all available financial aid programs and the CFA organization can increase students’ chances to obtain financial aid funds.
By reading and following the CFA tips, strategies, guidelines, and applying to our selected federal, state, merit and need based financial aid programs you will increase your chances of receiving financial aid. However, if you do not receive any financial aid funds, simply return the CFA package or a copy of your cleared check and you will receive your full processing fee within 10 business days.
If you would like to discuss this matter further, please e-mail me at ara-fay@collegefinadv.org or call 1-888-427-5966.
Faye A. Ara
Executive Vice President of Operations
Top
We received the same letter for our son in NC, and when I checked the website it all seemed official. We are new at this application process, so I filled the form and sent in $59. Have just received a booklet that has word-for-word what you find on the student websites for free. Have reported them to BBB where there are already many letters about their SCAM. Do not fall for it like I did. These people have to be stopped!
Reply to this Top
I did the same thing and my dad even thought it was legit. Me being the first child in college, I fell for this. I haven't received a packet yet like you, but I know I read somewhere else that you can return the packet they give you with a copy of the checkor something and they will refund you....supposedly.
Reply to this Top
Faye A. Ara
nice job saying I not a scam. If your not than why are you sending a form that makes it look like you must reply and send money versus a form OFFERING to help those who may be interested for a fee? Oh and why not spell check your form dufus.
What does "pLFoceed" mean?
Reply to this Top
Exactly. You guys, dont listen to faye. I'm sure faye either works for them or was paid to post that message
Reply to this Top
I just received a letter in the mail today. I was seriously questioning this service at first. I have a high GPA and assumed that it was a merit organization. I am glad that I did my research. I live in Tulsa, OK and currently attend a community college. I don't know how these people get your information, but I have learned that the only thing you should have to pay for is a college application. Do not fall for this. Scholarships will not cost you.
Reply to this Top
Does anyone have a copy of this letter? I reported them to my local news station and they are investigating. I don't have a copy of the letter or form and I was wondering if someone out there does.
Reply to this Top
I do. I will send you a copy. Email me your address. KimDMay@gmail.com
Top
So glad I looked this up. I'm 29 yrs old with a 3.5 gpa and this looks official enough for me to fall for. Very scary. Its also sad how they prey on people (like myself) that really need the money and then they try and take it away from them. pathetic.
Reply to this Top
Thank you to everyone for commenting on this. I almost fell for it but something told me to check in to it further when they requested the $59 fee. I recalled reading somewhere that it should never cost anything to apply for a scholarship or financial aid. I still have the letter and I think I will forward it to our local TV station or radio station.
Reply to this Top
I was about to fell for this. Luckily i look it up and found this website. I even called the organization, and they hours to return you a call. Also, be careful when you fill up your FAFSA. fafsa.com is another scam! My friend paid 60 buck for that. the real one is fafsa.edu.gov. i guess it has to have gov to be under the government.
Top
I got this letter too, and I'm glad I saw this site. This is disgusting, tricking people into paying for something that is free. Can't these people be stopped?
Reply to this Top
I too am a student at UW-La Crosse and received this later a few weeks ago. I was about to apply but I put it off to the side and luckily I forgot about it and then received an email from our financial aid office saying it was a scam!
Reply to this Top
does anyone have any advice as to what to do if you did fill out the form and send it in?
Reply to this Top
Photoshop is an amazing tool for altering reality, but it's only really great when you're aware of its effects. There are several tools existing to help people detect Photoshopped images. Of them site <a href="http://www.pskiller.com/">Photoshopped Image Killer</a> offers the best result. Unlike other forensic analysis tool, pskiller.com analyzes image integrity in the content level, which is more accurate and reliable.
Reply to this Top