@austinmshauri , what school did that?!
Some schools require parents and students to notify the school if there is a change in financial situation during the year. You agree to this when you accept your package. Case Western had such a clause. But I’ve never heard of a systematic change in financial aid, turning grants to land, mid semester. If verification is requested, or some change in circumstances occurs, a mid year review might be in order. I would think changing aid retroactively causing debt would not be legal. Surely, this did not continue.