pitfalls of false financial aid apps

The Pitfalls of Falsifying College Financial Aid

Stretching the truth to maximize college financial aid is riskier than most parents or students realize. The penalty includes paying back up to 3 times the amount of aid you received and fines as high as $10,000 per lie. Cheats may also be arrested and charged with a felony.

Among the most common ways parents and students get into trouble are:

Under reporting household income; By law, colleges are required to verify incomes claimed by 30% of students requesting financial aid. Beginning in 1999 the US Education Dept. has the authority to check all applications by matching them with original tax data given to the IRS. Other ways parents and students get into trouble are

falsely claiming that child lives with the lower-earning parent, if you are divorced;

falsely claiming that your single or divorced when you really are married so that the spouses income isn’t figured in the student aid calculation.

Resource: Bottom Line Personal - Jan 15, ‘99 , P. 8 & 9 Diane Van Riper - US Education Department


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