Virginia State University Gets a Major Financial Boost

Virginia State University is set to receive the largest gift in the school's history, a $1.5 million grant from the foundation of the late Reginald Lewis. The school is going to rename the business school after Lewis, who is considered by some to be the most successful black entrepreneur in history.

Lewis' life was cut short in 1993, when he died of brain cancer at the age of 50. He graduated from VSU in 1965, after going to the school on a football scholarship. The money is going to be placed in an endowment used to support scholarships, student travel and faculty sabbatical support. The university also plans to give an academic prize to a student at graduation using funds from the endowment.

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Scholarship Scams

As the cost of college skyrockets, so do the number of scams trying to take advantage of you! With the average cost of a private four-year college topping more than $32,000, more families than ever are on the hunt for scholarships that can help relieve some of that financial burden. Con artists and unscrupulous businesses snare several hundred of thousands of unsuspecting students and their families with fraudulent offers every year, to the tune of more than $100 million! Here's how to avoid letting it happen to you!

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Scholarship Scams

No. 1: Beware Scholarship "Prizes"

If you ever receive a notice by mail or phone announcing you've "won" a scholarship award or prize, high tail it outta there! With this type of scam, you'll be told you've won or are a finalist for a scholarship worth thousands of dollars ... but wait, there's a catch! Before you can claim your money, you need to pay a redemption fee first. Don't buy it for a minute. Legitimate scholarships aren't awarded by entering contests or drawing entries out of a hat!

Scholarship Scams

No. 2: You Know It's a Scam if ...

Let's start off with a few simple tip-offs that a scholarship offer is a scam:

· The company claims they will apply for scholarships on your behalf. Every legitimate scholarship will require you to apply yourself.

· The offer claims that anyone is eligible. All legitimate scholarships have certain criteria you must meet in order to qualify for consideration. The criteria might be broad, but some set of restrictions always applies.

· Someone notifies you by phone regarding a scholarship you have been awarded or are eligible for. Almost all legitimate scholarships will notify you by mail.

Scholarship Scams

No. 3: Never Pay an Upfront Fee to Apply

Never, EVER pay an upfront fee to apply for a scholarship. If you do, chances are good you'll end up saying "so long" to your money! This type of scam can look very much like a real scholarship program on the surface. In fact, they may even grant a small $500 or $1,000 "scholarship" or two to add to their credibility. But trust us, any scholarship that asks you to pay a fee to apply is not legit. These scams can afford to pay out a few times and still turn a tidy profit since they're pocketing thousands of dollars thanks to those upfront fees they're charging.

Scholarship Scams

No. 4: You Don't Need a Matchmaker

Steer clear of fee-based scholarship matching, search or consulting services. At best, they're a waste of your hard-earned money. At worst, they are a total rip-off. These services charge you a fee to search for scholarships you might qualify for. But you can access the very same information online for FREE! A quick search of any of the free scholarship databases available online will usually give you 15-20 scholarships that match your criteria.

Scholarship Scams

No. 5: No Guarantees in Life

The more unscrupulous scholarship matching "services" will make you all kinds of promises that they can't deliver on. The most common is guaranteeing to find you a scholarship -- which is complete nonsense. Thousands of students and their parents are lured into scams claiming "guaranteed" money for college so let's be clear... No one can promise in advance that you will qualify for or be awarded a scholarship. Most often, their so-called guarantee usually refers to them finding you a match, not whether or not you actually get a scholarship.

Scholarship Scams

No. 6: Beware Loans Disguised as Scholarships

Loans have to be repaid, scholarships don't. These scams ask you to apply for a scholarship (paying a small application fee upfront, or course). One of two things will happen here: Either you'll end up paying the application fee and the company will do a disappearing act. OR you'll discover that your supposed application scholarship actually qualified you for a loan which must be repaid. Keep in mind that a legitimate educational loan will never require an upfront fee. Any fees will simply be deducted from your disbursement check.

Scholarship Scams

No. 7: "Free" Scholarship Seminars

When you are in the hunt for college funds, you may get an invitation to a free seminar with a title something along the line of "How to Get a Scholarship for Your College-Bound Child." Truth is, most of these seminars are just a way to get you into a room where you will get a high-pressure pitch to buy something, whether it's a fee-based consulting service, college savings or investing tool, or an overpriced student loan. Skip the hassle and tap into the tremendous source of free information available online and at your local library or bookstore.

Scholarship Scams

No. 8: Psst ... I Know People

If you receive an offer that promises to give you access to "exclusive", "private" or "unique" scholarship information, head for the shredder immediately! Along those same lines, don't believe any pitch that claims they have influence with scholarship sponsors. Another common lie we can blow out of the water -- "our scholarship database is the biggest." Sure it is ... and my dad can beat up your dad.

Scholarship Scams

No. 9: Warning! Danger Ahead

If you're ever asked in a scholarship application (or by phone) to disclose confidential information such as your social security, credit card or bank account numbers, tear up that application or hang up the phone without hesitation. This is the oldest identity theft scam in the book. Once someone gets that personal info from you, they're that much closer to becoming you ... and can apply for new credit cards in your name, can withdraw money from your bank account, and more. No legitimate scholarship will ask for such information on an application.

Scholarship Scams

Federal matching funds is expected to increase the endowment to over $3 million, once additional fundraising has taken place. President Eddie N. Moore Jr., who retires tomorrow, is expected to lead the fundraising effort.

"This is a momentous achievement for Virginia State University," Moore said. "Reginald Lewis succeeded through savvy business dealings and by wisely choosing his investments."

I remember reading the autobiography of Reginald Lewis when I'd just graduated from college. I was encouraged to read the book by the author himself, who presented himself to me as a potential role model. Needless to say, I was impressed, for Reginald Lewis embraced the concept of black wealth building in a way that should be duplicated by every young black child in America.

VCU's outstanding gift reminds us of the struggle of Historically Black Colleges to obtain the funding and charitable giving they need in order to survive. Some believe that HBCU's struggle because African Americans simply refuse to give to their colleges. I don't believe this to be the case. Instead, HBCUs struggle to fund their endowments because black family wealth is less than one-fifth that of white families, making it that much more difficult for black families to give away their funds. Additionally, many successful and educated African Americans are saddled with tremendous amounts of student loan debt, in addition to a long list of relatives in desperate need of financial help. So, for many of us (notice, I used the word "us," since this has been my experience as well), charity ultimately ends up starting -- and ending -- at home.

Hopefully this amazing gift will the the start of a new trend.

Dr. Boyce Watkins is the founder of the Your Black World Coalition and a Scholarship in Action Resident of the Institute for Black Public Policy. To have Dr. Boyce commentary delivered to your email, please click here.

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