Scholarship / Grant 'Processing Fee' Scam
A message says you've won a scholarship or grant you didn't apply for and must pay a processing, redemption, or disbursement fee — which is the scam.
Think a message like this reached you? You can check it right now.
What this scam is
Students and families are told they've been awarded a scholarship or grant (sometimes one they never applied for) and must pay a small processing, redemption, or 'disbursement' fee, or provide bank details, to receive it. Legitimate scholarships and grants don't charge you to receive money; 'guaranteed' scholarships and fee-based 'scholarship search' services are red flags. The fee, and any bank/card data, go to the scammer.
What it usually looks like
- A scholarship/grant 'award' you didn't apply for.
- A fee to process, redeem, or disburse it.
- Requests for bank details or a card.
- 'Guaranteed' scholarships or paid 'search' services.
Common warning signs
- Paying a fee to receive a scholarship/grant.
- Awards you never applied for.
- Guarantees and pressure.
- Requests for bank/card details to 'deposit' funds.
Example wording scammers use
“Congratulations, you've been awarded a $5,000 scholarship! Pay the $50 disbursement fee to release it.”
“Guaranteed scholarship match — just cover the processing fee.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Processing/redemption fees.
- Your bank/card details.
- To exploit college-cost stress.
What to do
- Never pay a fee to receive a scholarship or grant.
- Search scholarships free through your school and reputable databases.
- Distrust 'guaranteed' scholarships and paid search services.
- Don't share bank details to 'receive' an award.
What to do if you already responded
- Contact your bank/card issuer to stop payments.
- Watch for misuse of any shared details.
- Report at reportfraud.ftc.gov.