Students chasing “no‑essay” scholarships may be trading a chance at cash for their personal data. Sites such as Sallie Mae’s Scholly platform hand out monthly $2,000 awards through a random drawing, labeling the process a sweepstakes. Because eligibility does not depend on grades or extracurriculars, the odds hinge solely on applicant volume, which ScholarshipOwl estimates at roughly one in 140,000.

Lead generation drives the model, says financial‑aid veteran Mark Kantrowitz. By collecting names, emails, birth dates and even sensitive details like Social Security numbers, sites can sell or license the data to lenders, advertisers and other third parties. Sallie Mae’s Education Services unit once piloted a data‑sale program, discontinued it in mid‑2025, and now claims it no longer markets personal information.

Privacy advocates warn that the opaque sharing of student data creates a power imbalance, and recent litigation underscores the risk. Former Scholly co‑founder Christopher Gray sued Sallie Mae in Delaware, alleging wrongful termination after raising concerns that minors’ information could be used to push predatory loans. The case highlights that even well‑intentioned “low‑burden” scholarships can expose students to commercial exploitation.