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Money back financial aid.

A student is applying for entrance into your school and makes some comments that seem to "tip you off" that they are really only there to collect on their Fed. Financial Aid and then will withdraw. Can an admissions personnel legally deter them in any way from enrolling and stop another loan default?

The financial aid staff at the institution that I work for does definitely have that conversation with the student and does make sure that the student understands that this is not "free money", which is what I hear a lot and that it is in fact a loan and will have to be paid back.

Michelle,

Regardless of the financial aid implications, if an admissions representative believes that a student is enrolling with no intention of finishing the program, the admissions rep should contact their admissions director for further guidance. Schools may deny admission to students if the school reasonably believes that they will not benefit from the program they are enrolling into. If the school has determined that a student intends to drop out shortly after enrolling, the student most certainly won't benefit from the program and can be denied admission on that basis.

John Ware

I would say there aren't any LEGAL actions an admissions recruiter could take to deter a student from enrolling with that intention, however I'm guessing the financial aid staff would have measures in place to at least have a conversation with prospective students regarding the consequences of defaulting on loans, etc. I'm not trained in financial aid, personally, so I'm honestly not sure how that's dealt with. But from an admissions recruitment perspective there's not a lot we are able to discuss about financial aid and how it's disbursed.

Legally, an Admissions Representative cannot deter a student from enrolling and taking out loans. However, we are upfront at the time of the initial appointment that our students do have to use Financial Aid to pay for their schooling. The costs associated with our programs do not always get covered by Financial Aid so students need to be prepared to come out of pocket for their education.

Federal financial aid doesn't cover every last nickel of the cost here at our school. So, it's up to the student whether they decide to max out their loans. But, we can't encourage or deter them from that decision.

Financial Aid does not cover the cost of the programs at our school.

I don't think that admissions representatives can legally deter someone from enrolling in school, even if you suspect they are just looking for stipend money. However, our student service department does speak with them about responsible borrowing and repayment. I think that is probably about as far as it can be taken.

i feel it is up to the student if they are willing to complete thier education. far as just going to school to get a check you could possibly try to deter them that if they borrow now they will have to pay back later.

No, we can not deter them or guide them in anyway from emrolling. At our school, we do not have to deal with this because we do not offer money back.

We don't have to deal with that issue at our school as federal aid does not completely cover the cost of tuition.

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