Can the school do this?

Question

My gf went to trade school and didn't finish due to birth of child. She had a loan thru BoA, federal loans, grants, and one scholarship. The course was for 9months and 10K, she only went for 2mo and the school wants her to pay them 5K, plus she has to pay BoA the 6K education loan. She called the school and asked why she owes them cause they have the money from the grants and scholarship. They told her that they had to send part of it back because she didn't finish so she didn't qualify for the full amount anymore. She wants to go back to school but she doesn't think she will be able to get any loans or grants because of owing the school money. She is making payments to pay off BoA. She doesn't want to start paying the school until she finds out if they can even do that. Any advice would be appreciated about whether they can do that and if she will still be able to get loans to go back. The only good thing is she now knows not to go to trade school...she can go to college and pay less.

Answer 1

Yes, unfortunately, the school can do this and by law, they have to give back the scholarship.  Federal and state grants are awarded based on the number of credits that the student is enrolled in before the last day of the add/drop date.  If the student drops a class before that date, his/her grant money will go down.  You are always required to pay the full amount of tuition every semester too if you do not completely withdraw from college before the specified date.  That is why they are telling her she owes.

Answer 2

Chances are, yes, they can. You should never agree to anything (especially involving large amounts of money) without reading the fine print. Scholarships and grants are generally awarded on the assumption that they will be used for your full education. The loans she made, however, probably do not have such conditions and probably have the condition of you will have to start paying them once you end your schooling and have to pay off all of the agreed amount you took out.

Answer 3

tell her to look at her contract with the school and read all the fine print

Answer 4

That's an Expensive trade school - it only cost me 20k to get my Bachelor's Degree.

You could get a real education for what you are paying that "trade school".