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Counselors warn against pricey financial aid help

05:40 PM CDT on Wednesday, October 25, 2006

By OLGA CAMPOS / KVUE News

The College Board reports tuition and fees in Texas rose 8 percent last year to about $5,900 per semester. The higher costs have more parents scrambling to find financial aid. But offers to help sort through the maze of available financial assistance might carry a hefty price tag.

KVUE News

Parents and students are searching for financial help when it comes to college.

High school students can be overwhelmed applying for college, taking entrance exams and figuring out how to pay for it all. That's where Joe Greg comes in.

As a college and career counselor, he's aware of companies which charge hundreds of dollars to help apply for financial aid.

"Last year I put in a scholarship scam, which also applies to financial aid," Greg said. Warnings about possible scams are included in a booklet Greg has compiled for students and parents.

Recently, EDIFI, a company based in Albany, New York sent personalized invitations to local high school students and parents asking them to attend a seminar this weekend in Austin. A check of the Better Business Bureau shows EDIFI has an unsatisfactory report.

"Based on past company experience, it looks like consumers are filing complaints with the Better Business Bureau because they are feeling misled by the actual invitation that the students are receiving in the mail. And they're complaining about their sales practices," said Erin Jones, BBB.

The BBB states EDIFI charges approximately $900 for its services. It's not illegal, in fact some parents are willing to pay such amounts to have somebody else fill out college financial forms.

But for other parents trying to cut down on college costs, Greg has a reminder.

"The FAFSA, the form that you fill out for federal aid, the first word is free," he said.

FAFSA stands for Free Application for Federal Student Aid. It's a key Web site for college-bound youngsters.

An EDIFI company spokesman Wednesday confirmed the BBB report but says the number of complaints is small when compared to the company's 60,000 client base.

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