NJASFAA Press Release

Prospective college students and their parents should use caution when engaging firms that “guarantee” financial aid to cover school costs.

The advisory comes from David Sheridan, President of the New Jersey Association of Financial Aid Administrators (NJASFAA).

“Anxiety about college costs is very real among families, and it’s upsetting to know that there are con artists who prey on that anxiety for their own benefit, leaving families with nothing,” Sheridan said.

“Students and their parents need to be aware that these scams are out there, and more importantly, they need to know that legitimate sources of assistance are out there.”

Sheridan’s warning follows a recent settlement announced by the Federal Trade Commission as part of its ongoing “Project ScholarScam.”

According to the FTC, Integrated Capital, Inc., doing business as National Student Financial Aid (NFSA), has agreed to pay $115,000 to settle charges of misrepresenting their ability to obtain college financial aid for students.

Sheridan, who is Assistant Vice President for Stevens Institute of Technology in Hoboken, noted that some unscrupulous companies use high pressure sales pitches at seminars and promise more than they can deliver.

He advised students and parents to use the FTC’s scholarship scam website (www.ftc.gov/scholarshipscam) that provides tips on spotting and avoiding scams.

“We live in the information age, so students who need information about financial aid can find it, and if they need help finding it, there are professionals who can help with that as well,” Sheridan said.

NJASFAA is dedicated to educating students, families, legislators, and others about financial aid. Membership numbers about 400 from over 100 colleges, universities, proprietary schools, lenders and government throughout New Jersey. This coming year, the association will celebrate its 35th anniversary.

For further information, contact Mark Singer at (201) 684-7550.