The 20-year-old produced another poor performance for the Three Lions as they drew 0-0 against the Republic of Ireland and Manchester United icon Scholes feels his downfall in recent months is remarkable.
Indeed, half a year ago, Scholes believes Sterling could have beaten any defender in the world. Not now.
The Manchester United legend told ITV during the half-time break of the England bore draw: "You have to feel for Sterling a bit, it looks like his confidence has gone a little bit. This is a lad six months ago, he could beat any defender in the world.
"He has great skill, great pace and he just looks like his confidence is shot to pieces."
Of course, critics and Liverpool fans alike will be quick to point out that Sterling's crisis of confidence is all of his own making.
Even if the 20-year-old wanted to leave the Reds, there can be dignified ways of going about it. Look at Luis Suarez when he wanted to move away from Anfield. He was told he had to stay and, in response, he produced one of the best seasons ever from a Premier League player, almost taking Liverpool to the title. He earned his Barcelona deal that way.
And what has Sterling done, by contrast, except crawl into his shell while his agent repeatedly tells the world what a supposedly phenomenal player he is?