“Congress makes the following findings:
A substantial amount of fraud occurs in the offering of college education financial assistance services to consumers.
“(2) Such fraud includes the following:
Misrepresentations regarding the provision of sources from which consumers may obtain financial assistance (including scholarships, grants, loans, tuition, awards, and other assistance) for purposes of financing a college education.
Misrepresentations regarding the provision of portfolios of such assistance tailored to the needs of specific consumers.
Misrepresentations regarding the pre-selection of students as eligible to receive such assistance.
Misrepresentations that such assistance will be provided to consumers who purchase specified services from specified entities.
Misrepresentations regarding the business relationships between particular entities and entities that award or may award such assistance.
Misrepresentations regarding refunds of processing fees if consumers are not provided specified amounts of such assistance, and other misrepresentations regarding refunds.
In 1996, the Federal Trade Commission launched ‘Project Scholarscam’, a joint law enforcement and consumer education campaign directed at fraudulent purveyors of so-called ‘scholarship services’.
Despite the efforts of the Federal Trade Commission, colleges and universities, and nongovernmental organizations, the continued lack of awareness about scholarship fraud permits a significant amount of fraudulent activity to occur.”