FTC Targets Unscrupulous College-Aid Firms

By Jeff Archer

The Federal Trade Commission is cracking down on what it says are unscrupulous companies that bilk students and their families of millions of dollars annually through fraudulent guarantees of college scholarships.

In unveiling the campaign here last week, the agency said it had filed civil complaints against five businesses, securing a temporary restraining order against each. The assets of each company have been frozen, and the FTC said it was seeking court approval to return some lost money to families.

The federal officials said that the companies advertise themselves as "scholarship search services," sending letters to families guaranteeing that, for a fee, they can match students with valuable scholarships. Often, though, the information the companies provided was outdated or easily available for...