If financial aid fraud involves federal student financial aid, call the Office of the Inspector General (OIG) at the U.S. Department of Education at 1-800-MIS-USED (1-800-647-8733). Fraud can also be reported by filing a complaint online.

How do I report someone lying on FAFSA?

Call the Office of Inspector general directly at 1-800-MIS-USED to report fraudulent use of educational funding. Speak with a representative and give him the information that you have on the person committing fraud. Fill out the online complaint form on the OIG website.

Can you get in trouble for lying on financial aid?

Lying on a federal document like the FAFSA is a felony. You, or your parents, face up to five years in prison and/or a $20,000 fine. This felony charge will follow you or your parents for the rest of your lives, hurting your future chances of an education and a job. You lose the money.

What is financial aid abuse?

Financial aid fraud and abuse is a serious, nationwide problem that has adverse effects on students, the university and even the federal government. Anyone who enrolls in an institution of higher learning and utilizes FSA without the intention of working toward a degree or certificate commits fraud.

Can you go to jail for lying on your FAFSA?

What are the penalties for lying on the Fafsa? The Higher Education Act of 1965 allows for penalties of up to five years in prison and a fine of $20,000 if someone is caught lying on the Fafsa. You will also have to pay back any financial aid, so the monetary consequences are even greater.

Can your FAFSA be audited?

The FAFSA is required for federal loans and grants, as well as aid awarded by states, colleges, and some scholarship programs. Still, 1 out of 3 FAFSA applications are selected each year for verification, an audit-like process to prove the information you provided is correct.

Can FAFSA look at your bank account?

Does FAFSA Check Your Bank Accounts? FAFSA doesn’t check anything, because it’s a form. However, the form does require you to complete some information about your assets, including checking and savings accounts.

What happens if you lie about income?

If you falsely inflate your income, decrease your rent/mortgage payment, claim to be employed when you aren’t or neglect to report your entire debt load, you may be approved for more credit. This may sound tempting, especially if you’re in financial straits, but it’s illegal.

Can a regular citizen report financial aid fraud?

Student loan abuse or financial aid fraud typically won’t be reported by regular citizens, as FAFSA forms are confidential and will only be shared with the Department of Education and the financial aid offices at colleges and universities.

What happens if a student falsifies a financial aid application?

If the school disciplines students for cheating on tests and falsifying admissions applications, it should also discipline them for falsifying financial aid applications. Remind families of the penalties for providing false information. Emphasize that failure to report all assets is fraud.

Where does financial aid fraud usually take place?

Financial aid fraud ultimately happens when a person lies on the FAFSA form. The FAFSA form is required for families who want to see if they are eligible to receive financial aid and if they are eligible, for how much.

How to write a good financial aid letter?

A good financial aid request letter can make or break a request for financial aid. Some student financial aid sources have online applications, but some require an application be sent through the mail. For these, the letter should give details of why the applicant requires financial aid.