You are probably right - it's not a scam but it is a lottery, not a true scholarship. (Technically, I think a "scam" would be if they took in money but never paid out as many scholarships as they claim). You are also right students shouldn't pay anything for scholarships, but I had forgotten about the processing fee because as I recall it was very small - maybe $2 or $3 - and my son chose to pay it himself. I can see how Who's Who can make a big profit on that, but I think that on an individual basis, my son was willing to pay a couple of dollars for the chance to win $1000, just as he might buy tickets for the state lottery or a local raffle every once in a while. Of course he knows that the odds are against winning... but somehow we keep buying those lottery tickets every time the jackpot gets big.