There's a timely update posted at the website of the Federal Trade Commission (www.ftc.gov) warning consumers about scholarship and financial aid scams aimed at high school seniors and their parents. As high school graduation draws near, students and their parents shift into high gear as they look for the money to cover the high cost of college tuition and housing. The sky-high cost of a college education often makes them easy prey for scammers.

Everybody needs money for college and it's precisely this need that some less than scrupulous companies are exploiting. A favorite venue for setting the hook seems to be free seminars, where a savvy sales pitch is delivered with the promise of a guaranteed scholarship in exchange for an upfront fee. The FTC says the offers frequently come with a seemingly reassuring money-back guarantee, which in fact has so many strings attached that a refund is virtually impossible. Other scholarship scammers tout "scholarship awards", but require a fee or even access to credit cards and checking accounts in order to verify a student's "eligibility" for the award.

Whatever the scam, students and parents should be aware of warning signs that a scholarship offer isn't legitimate. Any mention of a guarantee, for example, should raise a red flag immediately. Offers requiring an upfront fee, or access to credit card or banking information, have virtually no chance of being legitimate.

While the FTC emphasizes that there are legitimate companies that match a student's profile with a list of real scholarship opportunities for a fee, it pays to ask the right questions of these companies, too. Don't fall for overblown success stories. Instead, make a point of asking companies for local references citing real people you can talk to about the quality of service and results. Finally, always get any fee-for-service offer in writing.

The pressure of finding a way to pay for an expensive college education often causes students and parents to overlook one of the best sources for student aid: the Federal government! Each year, the Department of Education distributes some 80 billion dollars in Federal student aid as grants, work-study programs and loans. The opportunities available here are simply too good to overlook and they're guaranteed to be scam-free. Check out studentaid.ed.gov, the home of Federal Student Aid on the Web, for more free information!