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Financial Aid Audit

dr.nodr.no Posts: 108Registered User Junior Member
In past 2 years I have received a grant, this year, I was audited and was asked to submit a tax return. I submitted and they noticed my parents partnership interest income which was not reported in FAFSA.

Now they are asking my parent’s bank account statements before dead line. My parents would like to know if they submit what can happen and if they do not submit what can happen? What kind of action Financial Aid office can take?

I believe I many not qualify for grant, can they expel me from the school? Can they ask to return the grant I received in past? What else they can do?
Post edited by dr.no on

Replies to: Financial Aid Audit

  • thumper1thumper1 Posts: 35,781Registered User Senior Member
    I would recommend sending the school the information they are requesting. Folks make mistakes sometimes when doing the financial aid forms. The school will likely look at what you submit to verify what is correct and incorrect. I can't tell you what they will do with the information for sure. My guess (and it is a guess) is that they will review the information, make any necessary adjustments to what you submitted that may have been incorrect, and then adjust your aid accordingly. It is their responsibility to award the aid based on a formula...and if you had missing asset or income information, they more than likely will add it in.
  • sblake7sblake7 Posts: 1,691Registered User Senior Member
    If the unreported income is significant, they may also take a look at the last two years, and ask for those tax returns. Somewhere in the fine print when you accept the grants, you likely certified that the info you submitted in order to get the grants was correct, and you likely acknowledged that the grants would have to be repaid if the information was materially incorrect.

    They're asking for bank statements now-- they already have the tax returns-- so they're digging deeper. No good will come of this.

    Competent legal advice may be in order.
  • somemomsomemom Posts: 9,222Registered User Senior Member
    The first question would be why was the partnership income not reported on the FAFSA- is it something as simple as you following the line by line instructions and not seeing it asked for anywhere? If so, then perhaps it should have been on the woksheets.

    If this is an honest mistake, make sure they know that, ask the person how it should have been filled out. The forms are complicated and confusing, and they adjust them a bit each year. I have made errors several times online, usually to my deteriment, by entering info twice, getting confused when it pops up screens asking if I am sure about the numbers, then entering the same info both in the student place and the (non existent) spouse place.

    I have not actually heard any stories on this forum until this spring relating about people being asked for bank stmts. If it were me, I would call the person, let them know I am concerned that since they are digging deeper I must have made an error, ask them for input. If you were honest and truthful and made an obvious and easily explainable mistake, they probably won't fine you, but I would expect them to go back and recheck the prior FAFSAs and they may adjust aid due you to be correct.

    Did you or your parents complete the form?
  • jude_36jude_36 Posts: 543Registered User Member
    And if you refuse to submit the information that they are asking for, I believe that you lose the aid.
  • thumper1thumper1 Posts: 35,781Registered User Senior Member
    >>Did you or your parents complete the form?>>

    This would be helpful information for you and others. These forms are quite tricky and, to be honest, I would not advise students to complete them all by themselves.

    That being said...in the big scheme of things, as far as the college is concerned...it won't matter who completed the forms as BOTH the student and parent sign that the information provided is accurate.

    >>parents partnership interest income>>

    Is this a very sustantial amount of money? If so, I'm sure the college will wonder how and why it wasn't reported.

    But...just send them what they ask for. You may want to make an appointment to talk to a finaid person at the school to clarify the issue.
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