What happens when Pell grant students don’t show up for college class?
Does it seem like a bit of red tape is involved before a federal Pell Grant check is deposited to your college student account?
The Detroit Free Press explained why today in a piece called Plundering Pell Grants: Scammers ripping off colleges for millions.
Guess who pays for the fraud in the long run?
It’s not Uncle Sam, nor is it diluted into the federal budget. As Freep explains, other students on those campuses who are following the rules get stuck with a good amount of it:
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. …
Although colleges and universities can go after these scammers, called Pell jumpers or Pell runners, it’s an uphill battle to recover the money.