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As exam results are being declared all over India, a fresh batch of scholarship scams is in the news as it is targeting students and their families. The scams exploit the aspirations of students to be awarded scholarships to pursue higher studies.

A report released by the Ministry of Minority Affairs found that of 1,572 minority institutions that had been probed, 830 were fake or non-functional and comprised about 53% of the total.  This resulted in the diversion of Rs 144.83 crore in five years, funds meant for minority students' education.

What Is a Scholarship Scam?

Scholarship scams are fraudulent techniques where scammers impersonate valid organizations providing financial assistance. They can establish phone sites or email messages that offer scholarships, seek personal information, application fees, or bank account information. Once they obtain this information, they can utilize it for identity theft or financial exploitation.

A closer examination of the scholarship applications for 2022-2023 revealed that among the 25.5 lakh applicants, more than 6.7 lakh did not exist. Biometric verification procedures revealed that only 30% of the renewal applicants were real, and the remaining huge majority proved to be bogus beneficiaries taking advantage of the system.

Major Scholarship Scams Exposed

There have been many big scholarship scams which have recently been emerging online which calls for an effective system to resist their operations. Let us see about a couple of recent scholarship scams.

Minority Scholarship Scam

A government investigation showed that nearly 53% of the colleges under the minority scholarship scheme were 'phantom' institutions, which resulted in a scam of Rs144.83 crore.

Himachal Pradesh Scam

Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) officials have been reported to be involved in a Rs 250 crore fraud. Funds that were to be transferred to scholarships for Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) students were reported to be routed out by the officials. 

Properties worth Rs18.27 crore have been made obsolete in the context of this case.

Tripura Incident

Tripura government is registering FIRs against 34 students on suspicion of their being involved in fraudulent income certificates that have been provided to avail scholarships under post-matric.

Education inflation is pushing students toward scholarship scamming, says Director and Professor Jaipuria Institute of Management Dr Deepankar Chakrabarti.

He averred, "Societal progress, personal aspiration, and economic growth have all been coupled together to lead to a position where professional development is flourishing but with an extremely hefty price." 

Scholarship impersonators lure students with fictitious scholarships or admission lottery programs and proceed to scam them by getting them to send their bank information or pay mysterious fees.

"Gullibility proves costly for all concerned at the cost of credibility loss and the threat of punishment by the state," he went on, invoking greater awareness and vigilance.

Government Response To These Scholarship Scams

Grateful to these ominous incidents, the government of India has enacted a few actions:

Investigations By CBI: The Ministry of Minority Affairs forwarded the issue to the Central Bureau of Investigation (CBI) to inquire about the minority scholarship scam.

Digital Authentication: The government is imposing tighter authentication procedures on institutions which desire to apply for scholarships, e.g., physical authentication of facilities and student population.

Public Awareness Campaigns: There is an ongoing campaign for educating parents and students on how to recognize and steer clear of scholarship scams. This involves bringing to the forefront typical red flags such as unsolicited letters, requesting upfront fees, and no apparent eligibility criteria.

While parents and students are going through the post-exam period, they need to be cautious not to fall victims to scholarship scams. They need to be cautious and aware so that they do not fall victims to them.

West Bengal government believes in offering monetary aid to economically backward but meritorious students under the Swami Vivekananda Merit Cum Means Scholarship Scheme. With a view to lessening the burden of education, the scheme grants scholarships on a yearly basis to the beneficiary students from various levels of academics.

Key Scheme Features:

Eligibility:

The students must be domicile students of West Bengal.

Eligible to students of regular courses for Class 11 and 12, undergraduate, postgraduate, M.Phil, and Ph.D. courses in recognized colleges.

Academic records: 60% marks at undergraduate level and 50% marks at postgraduate level of candidates.

Annual total family income should not be more than ₹2,50,000.

Scholarship Amounts:

Higher Secondary: ₹12,000 per annum

Undergraduate Courses:

Arts and Commerce: ₹12,000 per annum

Science: ₹18,000 per annum

Postgraduate Courses:

Arts and Commerce: ₹24,000 per annum

Science: ₹30,000 per annum

Engineering and Medical Courses: ₹60,000 per annum

They are able to renew their scholarship annually if they maintain a good academic record and score an exam in the first attempt.

The state government, in its recent overhaul of the scholarship scheme, has increased the number of beneficiaries and the number of scholarships to benefit a larger proportion of deserving students. Officials have made it clear that the scheme is in line with the administration's plans not to allow even a deserving student to fall behind because of financial problems.

In another twist, the Calcutta High Court has sought detailed report on how many students have been given the Swami Vivekananda scholarships, evidencing judicial keenness to ensure the scheme is working and open. 

The Swami Vivekananda Merit Cum Means Scholarship continues to be an important support scheme, which allows thousands of West Bengal students to avail of higher studies and fulfill their scholastic ambitions.

The Tennessee Department of Education has published the Education Freedom Scholarship (EFS) Program student application checklist and encourages interested families to begin gathering required documents to apply once the application goes live in May.

The department will announce the opening date of the program in the coming weeks. The checklist for Education Freedom Scholarships, Tennessee's groundbreaking universal school choice program, is available on line at https://www.tn.gov/content/dam/tn/education/efs/EFS_ApplicationChecklist.pdf.

For the first time, Tennessee parents in nearly 95 counties will be able to enroll their child in the school of their choice, regardless of income level or ZIP code," Gov. Bill Lee said. "Near 200 schools have already indicated interest in participating in the Education Freedom Scholarship program, and I have complete confidence in the Tennessee Department of Education's ability to accept applications and offer excellent educational choices for parents next school year."

Interested Tennessee schools and families also are encouraged to sign up for periodic email reminders and prepare early for the 2025-26 school year by reviewing the most recent list of schools planning to participate, which accounts for 198 eligible schools. The department also still encourages interested and eligible schools to express their plans to participate.

"At the department, we are working hard to have the resources available to families so that they are prepared and informed when the application window opens later this spring," said Tennessee Commissioner of Education Lizzette Reynolds. "Having parents at the center of their child's education is essential, and I encourage all interested Tennessee families to remain engaged, sign up for our newsletter, and prepare when the application window opens."

Background

During the General Assembly's legislative session in January, lawmakers passed the Tennessee Education Freedom Act, and Lee signed the landmark legislation to establish the state's universal school choice program into law on Feb. 12.

The State Board of Education held a special called meeting on March 20 to discuss the Education Freedom Scholarship Act emergency rules, which further explain the law, define terms, and establish processes and procedures for the scholarships. During the meeting, the emergency rules received a unanimous positive recommendation, another major step in the process of implementation. The emergency rules will remain effective for 180 days while the department and State Board of Education move to issue permanent rules.

For additional information regarding the EFS Program and to receive other materials, visit the EFS webpage. Category I, II, or III schools interested in participating in the EFS Program can contact This email address is being protected from spambots. You need JavaScript enabled to view it..

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