Pell Grants in Miss.-why do students get the money then withdraw?

Question

I'm wondering why Pell Grants are being issued to students who go to school two weeks and then withdraw. They get a refund and then they enroll again the following semester and do this all over again. I don't see why the school gives the student the cash back. The cash should be reserved for use only as college tuition! Does anyone know why these policies are the way they are????

Answer 1

I don't know how they do it in Mississippi, but here in California, the aid is not given until half way into the semester.  Your tuition and fees are either postponed until aid is disbursed or you pay up front.  Even if a student was to do that, they would have to be enrolled for at least half the semester to keep the aid or they would have to pay it back.  If they dropped out right after receiving the aid they would have to pay it back and the feds will hound you forever until it is paid back just like student loans.  Lastly, if the student drops courses, next semester they would be on probation for getting too many Ws, and the semester after that they would be ineligible for aid.  No other school will accept you if you get kicked out of school.  You have to wait at least a year.

Answer 2

Well, I am sure that the school will catch on eventually. But you get the money back, because you earned the grants and you can use it towards books (as I do), or housing, or whatnot.

I would speak to someone about that in the financial aid department if that continues, and there could be an investigation.

Answer 3

Search the questions in this section.  It's FULL of people who did exactly that and now don't understand why the government is refusing them more fin aid, not releasing transcripts to other schools, and sending them to collections to have a judgment put against them.

Don't worry... the school and the Department of Education knows what is going on and it does catch up with them.  Those who drop out two weeks into the semester have to pay that money back... then they also have an outstanding debt with the college because they weren't eligible to receive the fin aid they actually got (because they didn't attend long enough).  

Think about it... that little burst of bad judgment costs them double tuition... for classes they didn't even complete.  It's just that most of them just don't realize it until a lot later!!  When they have moved on to another school.

Your school will have a policy called "Satisfactory Academic Progress" in order to get fin aid.  Look for it on the website.  If they don't meet the specified rules.... bad things happen!!!!