If someone seeks financial aid, but is planning on dropping the courses is this fraud?
May 21, 2010 in
Financial Planning
I know someone that is scamming to get financial aid which has been approved and drop the courses so that they can have the aid, but the not the courses. Is this fraud? How do they get away with this?
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5 comments
walking through life on May 21, 2010 at 10:48 am
yes it is fraud, and I would alert the financail aid office of the school. If you recieve financial aid and drop classes, you usually have to pay back the money (its based on how long you were enrolled in the class while it was taking place for instance if you are enrolled for two months you would pay back less compared to dropping after one month). But this isn’t the way to go. Talk your friend out of it. Its not a good idea and to recieve it you have to sign saying you are agreeing to take classes and do other things and if you don’t comply with some rules you can face a fine and possible jail time.
sparky on May 21, 2010 at 10:48 am
How would that work? When I got my student loan, I never saw any check or funds with my name on it. It went directly to the school, if I dropped out, they could care less. They got paid, I would have to pay it back reguardless.
Suddenly Human on May 21, 2010 at 10:48 am
Yes it is fraud and they won’t get away with it. When they drop, they will then have to pay back the Dept of Education for their financial aid AND they will owe the school for the tuition since they didn’t "earn" the right to get the aid to begin with. You should see the look in their eyes when the person realizes they have to pay TWICE for credits they dropped.
Trust me, they won’t get away with it.
Bill M on May 21, 2010 at 10:48 am
Tell the school’s financial aid office about it.
Kayla B on May 21, 2010 at 10:48 am
Yes this is wrong. Most of the funds will go to the school to pay tuition. However if the student drops they will be required to pay it back based on the Return to Title IV rulings. They wont get away with it like they think they will.
I’ve found some good information here…
http://www.FinancialAidQuick.com/
Good Luck.