Scholarship Scam: Why Every Student Must Know This Before Applying For Colleges

As exam results are being declared all over India, a fresh set of scholarship scams is gaining momentum as it targets students along with their families. These scams take advantage of the aspirations of students to receive financial assistance for higher studies.

A report by the Ministry of Minority Affairs found that of 1,572 minority institutions under investigation, 830 turned out to be fake or non-functional, making up about 53% of the total.  This resulted in the misappropriation of Rs 144.83 crore over five years, funds which were meant for the education of minority students.

What Is a Scholarship Scam?

Scholarship scams are misleading tactics in which scammers impersonate genuine organizations providing financial assistance. They might set up phone websites or send emails guaranteeing scholarships, asking for personal data, application fees, or bank information. After they have received this information, they might use it for identity theft or financial fraud. 

A closer examination of the scholarship requests for the period 2022-2023 revealed that of the 25.5 lakh applicants, more than 6.7 lakh did not exist. Biometric verification procedures disclosed that merely 30% of renewal applicants turned out to be real, exposing a large proportion of bogus beneficiaries taking advantage of the system.
 

Major Scholarship Scams Revealed

Many major scholarship scams have recently surfaced online which needs a proper system to counter their practices. Let's know about some recent scholarship scams.

Minority Scholarship Scam

A government inquiry found that nearly 53% of the institutions under the minority scholarship scheme were 'sham' ones, which resulted in a scam of Rs144.83 crore. 

Himachal Pradesh Scam

Officials of the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) were allegedly involved in a Rs 250 crore scam. Funds meant for scholarships to Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) students were said to have been pumped off by these officials. 

Properties worth Rs18.27 crore have been outdated concerning this case. 

Tripura Incident

The government of Tripura is planning to register FIRs against 34 students who are suspected of having produced false income certificates to avail of post-matric scholarships.

Also Read: Himachal Scholarship 'Scam': ED Freezes Assets Worth Rs 18 Crore of Educational Institute, Promoters

Dr Deepankar Chakrabarti, Director and Professor at Jaipuria Institute of Management, has warned that rising education costs are pushing students toward scholarship scams.

He said, “Societal progress, individual aspiration, and economic growth have all been bundled together to create a scenario where professional education is prospering, but the financial cost is formidable.”

Scammers lure students with fake scholarship offers or admission lotteries, tricking them into sharing bank details or paying hidden fees.
“This gullibility costs students heavily in terms of lost credibility and possible punitive action by the state,” he added, urging greater awareness and caution.
 

Government Steps To These Scholarship Scams

Due to these disconcerting events, the Indian government has undertaken several steps:
 

CBI Investigations: The Ministry of Minority Affairs has referred the issue to the Central Bureau of Investigation (CBI) for investigation into the minority scholarship scam. citeturn0search0

Digital Verification: The government is enforcing stronger verification procedures on institutions seeking to apply for scholarships, such as physical verification of infrastructure and number of students. citeturn0search6

Public Awareness Campaigns: A campaign is in place to raise awareness among parents and students of identifying and staying away from scholarship scams. This involves pointing out typical warning signs like unsolicited offers, requesting advance fees, and no visible eligibility criteria. citeturn0search1

As students and parents go through the post-exam season, it is essential to be cautious against scholarship scams. Being aware and careful will help them safeguard themselves from falling victim to such scams.