Pell Grant scammers ripping off Michigan colleges for millions

[Zacha341]

From article:

Thousands of Michigan residents have collected Pell Grants without attending classes in the past year, costing Michigan's colleges millions of dollars that have to be paid back to the federal government.

At Henry Ford Community College, $4.1 million -- about 10% of the money the college received in Pell Grants -- needs to be paid back to the U.S. Department of Education this year, a move that will likely contribute to a tuition increase at the Dearborn school.

The problem isn't limited to Michigan, and it isn't new, but experts say it's getting worse...

How some are gaming system

The scammers are doing something entirely different.

First, they register for classes and fill out a financial aid form. They get a Pell Grant -- a maximum of $2,750 a semester for a full-time student taking 12 credits, said Wilma Porter, director of student financial resources and scholarships at Oakland Community College. Those 12 credits would cost $891.

If students don't spend any money at the campus bookstores on required texts or pay any other costs, they would have more than $1,850 left in the account. OCC sends those students checks for the amount left over.

And if those students never show up, they still have that money and can be hard to track down. Schools bill them and can send bill collectors their way, but usually to no avail.

Pell Grant scammers ripping off Michigan colleges for millions

http://www.freep.com/article/2013021...s-for-millions

[Honky Tonk]

From article:

Thousands of Michigan residents have collected Pell Grants without attending classes in the past year, costing Michigan's colleges millions of dollars that have to be paid back to the federal government.

At Henry Ford Community College, $4.1 million -- about 10% of the money the college received in Pell Grants -- needs to be paid back to the U.S. Department of Education this year, a move that will likely contribute to a tuition increase at the Dearborn school.

The problem isn't limited to Michigan, and it isn't new, but experts say it's getting worse...

How some are gaming system

The scammers are doing something entirely different.

First, they register for classes and fill out a financial aid form. They get a Pell Grant -- a maximum of $2,750 a semester for a full-time student taking 12 credits, said Wilma Porter, director of student financial resources and scholarships at Oakland Community College. Those 12 credits would cost $891.

If students don't spend any money at the campus bookstores on required texts or pay any other costs, they would have more than $1,850 left in the account. OCC sends those students checks for the amount left over.

And if those students never show up, they still have that money and can be hard to track down. Schools bill them and can send bill collectors their way, but usually to no avail.

Pell Grant scammers ripping off Michigan colleges for millions

http://www.freep.com/article/2013021...s-for-millions

It's a shame that someone can figure out this scam, but the "learned" people that set up the Pell Grant system couldn't see it coming. Guess where these "institutions of higher learning" are going to make up the difference?