I need to report FAFSA fraud...how?

<p>This thread is nearly three years old. The situation is probably in a pretty different place by now.</p>

<p>You never know what financial monster are hiding under someone else’s bed. Be cautious in pointing fingers.</p>

<p>Perhaps the house is mortgaged to the hilt. </p>

<p>SSI/survivor’s benefit would barely cover the utilities, let along taxes or a mortgage.</p>

<p>She has no income from a job; the income from the estate needs to last through 30 to 40 years of widowhood. </p>

<p>A $350,000 nest egg will only generate around $9,000/year at current conservative investment rates. If college costs take 1/3 of that, is she suppose to live on $6,000/year?</p>

<p>She may well be trembling at the prospect of eating out of dumpsters. From a big mortgaged house to a cardboard box is a haunting image for older single women.</p>

<p>Don’t underestimate the fears of the population segment of older women, widows, or even more so, divorced women who spent decades raising their children rather then paying into social security or a pension. </p>

<p>And consider those fears before dropping a dime to kill someone’s financial aid.</p>

<p>If you really want to help the family who may be getting into trouble with the IRS, get a financial advisor/tax specialist to meet with the family. </p>

<p>It’s serious business to report someone for fraud unless you are sure that is the case. I have seen families legitimately get school aid that look like they are very well to do. Since home equity and certain types of assets are excluded from FAFSA numbers, it is possible that your in laws are fine.</p>

<p>This thread is from 2006.</p>

<p>i wonder what happened…</p>

<p>my sister in law has been receiving full scholarship because she has two children and considered a single mom but in fact she is married to my brother for over 12 years but they never issued a city hall marriage license. Although they did have a wedding receiption and everyone attended. She lives at the same house with my brother and their kids and he owns the property and he owns numerous properties and has his own successfull business. Obviously she has been lying her way through and what is upsetting me more is my daughter who is in college did not receive one dime in financial aid because me and my husband work and our income which by no means is high but considred to be ineligeble for financial aid. I have had to work more hours so that I can get overtime in order to pay the monthly installments on her loans. My daughter is graduating this year and I have loans totalling at least $60,000 from a State Univ… I know that there are many parents in my position and I can deal with this if things were fair. But I know for sure that my Brother and his wife have an income much much greater than mine and they get all this money because they lie and they hide the truth and know how to beat the system. I know there will always be those who abuse the system but if we sit and watch it will not get better. What does the Financial Aid Entity have in place to combat this abuse. At the end of the day if the money is allocated properly then the finacial aid distribution will be fair and reach all those who truly need it. Help me figure out a way to bring this forward.</p>

<p>Hmmm, interesting conundrum. If the person is NOT legally married in the eyes of the govt, then are they married for FAFSA?</p>

<p>I mean, I know it seems wrong, but there is a great deal of common sense that does not apply to the FAFSA, it is all about the exact rules.</p>

<p>Living together for over 12 years…depending on the state this becomes a common law marriage.</p>

<p>Good point, vball mom</p>

<p>I think you would report it to the financial aid officer at the school she attends</p>

<p>Mind your own beeswax!</p>

<p>If the state does not recognize common law marriage, then your sil is not married and she can apply as a single person </p>

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<p>The other thing to remember is that the story people tell in public is often inaccurate and “spin” for maximum effect in conversation…not the true story. You may think something is so and it is not that way…unless you know she really got “full scholarship” I would take it with a grain of salt.</p>

<p>We have all heard all about kids getting a full merit scholarship or a full athletic scholarship to an IVY, but there is no such thing, there is need based aid only, yet people still brag around their town about the award when they are really telling those in the know that they have financial need.</p>

<p>I have been doing FAFSA (and the occasional CSS PRofile) for 10 years, I have filed honestly and with integrity every time, but I would hate to have to undergo an audit. I mean, I have done verifications and all, but if I had to go back and recreate from my notes exactly what the numbers in 2001 meant and from where i derived them, that would be majorly stressful. So, think long and hard about it and make sure you really know that they are committing fraud.</p>

<p>Some people just like to talk big, a big story about a great full aid package turns out to be 100% loans or a $1000 merit award against a $50k school, there are so many kids I have helped and whose forms I have actually seen and whose public story does not match the reality that I would be careful to point the finger.</p>

<p>I realize this is a bit late but - but only if you’re willing to suffer persecution for being the only honest person in this situation - keep trying. I’ve been doing so for over 5 years as of today and NOBODY in government will even talk about it. </p>

<p>In-fact the reply I received from the US ‘Justice’ Dept was - “You’ll have to hire a lawyer to prosecute them (SUNY officials) yourself. We’re not going to act as your lawyer”. </p>

<p>Excuse me for seeming ‘stoooopit’ - but aren’t the ‘law enforcement’ personnel within the US Govt supposed to investigate and prosecute criminals who violate federal laws? Since when is it left to the rape victim to hire an attorney to prosecute the rapist?</p>

<p>If US university officials are deliberately coercing naive students into committing felonies in-order to gain financial aid to pay for classes these same officials demand the students enroll in (classes having no relation to their declared major but ‘required’ to occupy the student’s time on-campus until the officials deign to allow the students into those classes ‘required’ for graduation) - shouldn’t these officials be prosecuted?</p>

<p>If US university officials are making an ‘offer’ to a student (and family) of an item (‘degreed education’) for an agreed-upon price (‘tuition and fees’) and once paid decide to DOUBLE that price (and refuse refunds) - haven’t these officials acted in poor faith - violating the agreed-upon ‘contract’ and defrauding the student?</p>

<p>If a student has successfully completed all the required coursework in their program but due to over-booking of lab classes is denied a seat for a year - shouldn’t the university allow that student to ‘sit-out’ a year and re-enroll for the lab classes once a seat DOES become available? Why should that student be forced to pay for extra classes (effectively doubling their debt in loans) merely to remain ‘enrolled’ - subsidizing university officials’ foreign vacations?</p>

<p>This thread started almost 5 years ago…with just a small posting over a year ago.</p>

<p>My approach would be try to convince them to submit a revised forms because the verification process may very well catch them. Many people go through verification - much more than audits. If the college finds something suspicious, I believe they are legally obligated to report it to the Feds, which will be passed onto the IRS. That could cause much unpleasantness. </p>

<p>If it was not a family member, I’d say turn in illegal conduct. However, I’d be hesitant to turn in a close relative.</p>

<p>i know this is late, but i too need to report a couple who is involved in fraudulent actions against fafsa, i do not think it is fair for people like myself who does not receive any type of aid, while others who are 10x financially stable then myself receive more free federal aid! and to all the other people who wrote for you to stay out of Ur mother in laws business, are most likely doing fraudulent stuff as well!</p>

<p>This is a zombie thread – it’s been brought back to life repeatedly since 2006!</p>

<p>Beat 'em or burn 'em, they go up pretty good.</p>

<p>Well if you want to report them, then report them. Honestly I wouldn’t waste my time over something like this though.</p>

<p>I cannot believe how many of you are saying, “mind your own business.” Just whose business is it? WE the taxpayers? I am sick of our young people thinking we owe them… If this person takes money for college when it is not necessary, she is preventing some other student less fortunate than she from getting the aid… </p>

<p>Shame on you… where is your sense of right and wrong?</p>