FINANCIAL AID SCAM ALERT

By David Levy (Caltech) and Craig Yamamoto (Sierra College)

As many of you already know, there are fraudulent organizations preying on students and families, typically from non-native English speaking and low income families. They pressure the families to pay a hefty fee to help them find financial aid and complete applications including the Free Application for Federal Student Aid, known as the FAFSA, and offer very little in return. This service is unnecessary for students since the FAFSA application is free and college financial aid offices and other community based organizations provide free assistance.

The California Office of the Attorney General (AG) formed a small working group to gather information in order to investigate financial aid scams operating in California. The representatives include the California Association of Student Financial Aid Administrators (CASFAA), the California Community Colleges Student Financial Aid Administrators Association (CCCSFAAA), the California Student Aid Commission, FinAid.org, California Cash for College, the California Rural Legal Assistance offices and other organizations.

If you are aware of any students who may be victims, we encourage you to forward the information to the Attorney General. You can visit the CASFAA site (www.casfaa.org) to help families obtain and complete the “intake form” prepared for use at California Rural Legal Assistance offices to document the crime and send it to the Public Inquiry Unit at:

Public Inquiry Unit

Attention: Financial Aid Consulting Scams

Office of the Attorney General

P.O. Box 944255

Sacramento, CA 94244-2550

Phone: (800) 952-5225

Fax: (916) 323-5341

Website: http://caag.state.ca.us/contact/general.htm

We thank you for your help in assisting any families who may be victims. Please contact us for more information:

David Levy

Director of Financial Aid

Caltech

Phone: (626) 395-6280

Email:

Craig Yamamoto

Financial Services Manager

Sierra College

Phone: (916) 789-2805

Email: