<p>I am aware of a student who is having their classes paid for by the TRA program after leaving GM. This student is also getting full Pell grants. Since all of their schooling is paid for through the TRA program they simply cash the Pell grant money and spend it on everything but schooling…Is this fraud? They are receiving $5500.00 in Pell grants every semester and none of it is used on schooling.</p>
<p>Pell grants aren’t restricted to tuition and fees; they can be used for things like housing, food, and school supplies. If the student is using them for completely unrelated things, though, that is fraud; you have to sign an agreement saying you won’t do that to get them.</p>
<p>The Pell is an entitlement grant…meaning you get it if you are eligible to receive it. Unless another grant specifically states that the Pell will reduce the grant, it won’t be reduced.</p>
<p>This is one example of double dip.</p>
<p>Other examples are Federal Tax Credits & Federal Direct Student Loans, Pell Grant & NYS TAP, Federal and NYS Earned Income Tax Credit.</p>
<p>They may have to report either TRA or Pell Grant as income on their 1040.</p>
<p>amar, that’s not true. thumper is right. It’s an entitlement grant.</p>
<p>Oh, no, it’s definitely an entitlement grant. You obviously can’t get a Pell grant and then go drop out and spend it on booze or whatever, but you’re completely right here.</p>
<p>The student is expected to let his/her TRA contact know when Pell is received - a student who is Pell-eligible will always receive the Pell. Whether or not the TRA award has to be adjusted as a result depends. There are rules regarding what/how many classes TRA will cover. The student works with the TRA office, and you cannot truly know what has been determined to be acceptable for this particular student. My advice is to let this go.</p>
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<p>If you drop out, you lose the Pell…</p>
<p>If all of your school costs are covered by other aid (merit, whatever), then you get Pell to use however you want…buy a car with it, whatever.</p>
<p>But no student is getting $5500 per semester. Max pell is $5500 per year.</p>
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Good catch. Maybe OP was guessing.</p>
<p>Thanks guys it was very informative. Its just frustrating for me to witness this as I struggle to pay for college while someone else is spending it on booze and bars. So can I interpret the results of this thread as it is legal for them to do so?</p>
<p>As long as that person has informed GM of this aid.</p>
<p>Also remember that you likely don’t know the whole story. As stated above, you only get 5550 per YEAR max through Pell.</p>
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TRA has nothing to do GM. Your state’s DOL / Workforce Development is handling the TRA.
I agree. One never know the other people’s FA or even their taxes completely.</p>
<p>Sorry 4dad, my mistake. Reading quickly and misread :)</p>
<p>Knowing that it is only around 5 grand a year instead of 20 grand like I thought softens the blow a little. i researched the TRA program a little and found some dated stuff that states the TRA cant be reduced because of the Pell grant. So apparently this is legit to do. They get paid twice for school while I cant get paid once.</p>
<p>You really should stop comparing yourself to other people. I’ll leave it at it’s not fun to be a zero EFC student.</p>
<p>*Its just frustrating for me to witness this as I struggle to pay for college *</p>
<p>Perhaps if you used CC to help you plan for college expenses instead of just to complain about others you wouldn’t still be struggling.
:)</p>
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TRA means someone lost a well-paid job and is on a job-changing program. Most likey his/her new job would not pay as well as the old job.</p>