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  1. #1
    Join Date
    Jul 2013
    Posts
    3

    Default Financial Aid Office Error Results in Being Sent to Collections

    My question involves collection proceedings in the State of: Michigan

    I was a student at one of "those" private universities. I applied for FAFSA as I had in the past when I attended college and never had a problem. The FA office kept calling and asking for more and more documentation. They even asked for my parents W-2's, which I had never been asked for before. I got copies from my parents and turned them in. The FA officer said there was a "discrepancy" in the amount of earnings and the W-2's. I asked my parents and my mom does some temp work and is paid by 1099, and not W-2's which they didn't ask for. I called the FA office to let them know this was the reason and she said its "out of her hands" and the FA has been denied due to lack of proper documentation. They are now trying to charge me over 3000 dollars, which was the amount of my approved financial aid. I won't (and can't) pay it and they are threatening to turn it over to collections. I don't want my credit ruined at such a young age. Is there anything I can do legally? My sisters are attending public universities and no problems with the exact same FAFSA information from our parents.

    Because of all the hassle, I chose not to go back to the school. Now they are saying they can't do anything because I'm not a student, though I tried resolving this for months while I was a student.

    Any help or advice would be greatly appreciated.

  2. #2
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    Quote Quoting KevinC
    View Post
    My question involves collection proceedings in the State of: Michigan

    I was a student at one of "those" private universities. I applied for FAFSA as I had in the past when I attended college and never had a problem. The FA office kept calling and asking for more and more documentation. They even asked for my parents W-2's, which I had never been asked for before. I got copies from my parents and turned them in. The FA officer said there was a "discrepancy" in the amount of earnings and the W-2's. I asked my parents and my mom does some temp work and is paid by 1099, and not W-2's which they didn't ask for. I called the FA office to let them know this was the reason and she said its "out of her hands" and the FA has been denied due to lack of proper documentation. They are now trying to charge me over 3000 dollars, which was the amount of my approved financial aid. I won't (and can't) pay it and they are threatening to turn it over to collections. I don't want my credit ruined at such a young age. Is there anything I can do legally? My sisters are attending public universities and no problems with the exact same FAFSA information from our parents.

    Because of all the hassle, I chose not to go back to the school. Now they are saying they can't do anything because I'm not a student, though I tried resolving this for months while I was a student.

    Any help or advice would be greatly appreciated.
    If you received the services and attended the classes then paying is your best option. The other option is collections and then evenutally a judgment.

  3. #3
    Join Date
    Jul 2013
    Posts
    3

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    Quote Quoting Antigone
    View Post
    If you received the services and attended the classes then paying is your best option. The other option is collections and then evenutally a judgment.
    If you had read my post, paying is not an option and that isn't what I asked. The government has said, here is your money, $1800 in Pell Grant and the rest in loans. They did not get the financial aid due to their error, not mine. No other school has had any issues with the FAFSA information for me or my siblings. Repeated calls to resolve the issue while I was in school were not returned. Why would I pay them when the government has already offered to do so?

    What I am asking are what my legal options are, not paying them for screwing up.

  4. #4
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    Quote Quoting KevinC
    View Post
    If you had read my post, paying is not an option and that isn't what I asked. The government has said, here is your money, $1800 in Pell Grant and the rest in loans. They did not get the financial aid due to their error, not mine. No other school has had any issues with the FAFSA information for me or my siblings. Repeated calls to resolve the issue while I was in school were not returned. Why would I pay them when the government has already offered to do so?

    What I am asking are what my legal options are, not paying them for screwing up.
    I gave you your legal options, you just didn't like them.

  5. #5
    Join Date
    Sep 2012
    Posts
    1,991

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    You can take copies of all of your financial aid papers, admissions papers, and parents tax papers to an attoryney and they can review your case, there is no way we can analyze the actions of the school, the government, yourself, and your parents to determine who is really at fault for what.

    Do not post scans that stuff is WAY too sensitive to share with the internet.

    When you see a lawyer expect to pay up front.

  6. #6
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    This was not rocket science. You should have provided all the records initially. Self Employment income line 12 (from Sched. C), does not go on the same line as w2 income, line 7. It sounds like mom screwed up the return, not the school interpreting it.

  7. #7
    Join Date
    Jul 2013
    Posts
    3

    Default Re: Financial Aid Office Error Results in Being Sent to Collections

    Glad I didn't take your advice. My GF's mom is a paralegal and she called the school saying she was calling from the law offices of xxxx and needed some documentation, and magically 3 days later, the school sent me an email apologizing for the error and that the situation had been "resolved" and my balance was now 0. Saved me $3200.

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