Pell Grant Cancelled-Registration BLOCKED- URGENT Solution Needed in 24 hours

Paying for College
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<p>My son is a sophomore at Sonoma State University in Northern CA. Awarded Pell Grant his Freshman Year in excess of tuition costs. We filed the same Fasfa Info for this school year and we notified he was awarded the same in excess of funds needed, Pell Grant for 2014-2015 year. A few weeks later and after school started, he received a notice in his to do list section of his online school portal, that he needed to make corrections to his Fasfa Application. An Estimate of Income was used when completing the Fasfa and because I am self-employed it is updated when my taxes are done in October. I do not file until October extension period. I contacted Financial Aid in August as soon as we got the notice and told them I cant update anything until October. I was told the notices are auto-generate and not to worry about it the time frame to force a withdrawal had passed and to just get them the info when I could. </p>

<p>Two more notices came with warnings and each time I was reassured, they cant regulate who get notices but to ignore them. In Early October I get an email stating my son 's application had been selected randomly by the US Dept of Education and Federal Processor. If was explained to me that now with the audit, I would have to go in person and request an Account Transcipt at the local IRS office so they can verify the information on it. Randomly selected for a process they have no protocol for admittedly with regards to the Grant not funding because of an audit and the notices of consequence did not apply because the Grant is in excess of what is needed so they dont worry. </p>

<p>A week later, we get a notice it was cancelled and the $4,000 is due immediately. After contacting the FA officer I have been working with for 2 years at school again to verify the notice was in error and auto-generated, he replied that I had plenty of time to submit the Tax transcripts and it is too late. I ask him, "what is too late when all I have been told is ignore the email notices and get it you you when I can" If there is a date in which everything will change then inform me. </p>

<p>Escalated to the FA Administrator now, she tells me and I quote," I will give your son a deadline of Nov 3 to provide your 2013 Federal Tax Return Transcript. If you meet that deadline the award will be reinstated. If you do not meet that deadline, SUG will not be reinstated. Pell Grant are not subject to limited funding, so those awards can be reinstates regardless of the Nov 3 deadline." She also states if I cannot make that deadline, to let her know. It is October 24, 2014 and with no control over the IRS it can take up to 1 full month to receive. I let her know more time would be needed. Today the Grant has been removed from his profile, it has been cancelled and she says I had until October 21, 2014 to get her to her. Through talking to many agencies today, the many lies and discrepancies I have wasted hundreds of hours on:</p>

<ol>
<li><p>School FA Administrator is the one who looks at the information when the US Dept of Education randomly flags an Award. Lie: I was told that the Federal Processor would view, the school only facilitates getting the info.</p></li>
<li><p>The School is not the decision maker of the eligibility of the award or the outcome of the audit. Lie or Creative wording: The school FA Administrator can determine based on how she interprets the provided documents. But I was led to believe they do not.</p></li>
<li><p>The only method acceptable for confirmation of the EFC and Award Eligibility is the IRS Tax Transcripts. Lie: The FA Administrator can accept other documents to include but not limited to: W-2, A copy of your Tax Return accompanied by an Electronic Transmission Confirmation Receipt from IRS .</p></li>
<li><p>The Financial Aid Office has not control over the Registration Hold. Lie: The hold is initiated by the FA Office and them Reporting it to the Registrar. To resolve a Hold due to Financial Fees Unresolved or Not Paid you contact the FA office so they can update or release the Hold. I am pretty sure they CAN do something here.</p></li>
<li><p>Back in Sept, I was told the award was cancelled and nothing could be done. Lie: as this has continued to escalate, they had it within their power to provide an extension, she tells me the Nov 3 extension didnt even apply to the Pell Grant so in can be reinstated regardless of Nov 3. Or is that now a lie too???</p></li>
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<p>Tonight after emailing her and copying the University President, Provost, Student Affairs, and a few more....she says she will look at my tax return and yes, it is at her discretion to accept other forms of proof of income. Tomorrow she will tell me if she can accept it after looking at it, and/or if she can make a recommendation to lift the Hold for registration which he does on 11.20.2014. </p>

<p>I am preparing for the worst. Have there been any violations or discrimination here that we should seek other support on? The hardship and stress this has placed on myself and my son for the last 3 months has been life changing. The hours spent have impacted my business and work. </p>

<p>At minimum the school, The Financial Aid Office has NEVER suggested another solution. I have laid awake the last 2 nights trying to figure out what to do. Having to do their job for them should they not have suggested:</p>

<ol>
<li><p>If you can pay the $4000.00 so not to block his registration, we can reimburse you when the Pell Grant Award funds after we get your Tax Transcript </p></li>
<li><p>If you cannot come up with the money somehow, let's get one of your approved loans to fund this and you can pay it back as soon as the Pell Grant funds later for this last semester</p></li>
<li><p>Admittedly, we dont have a formal policy and never gave you a date, then cxl and told you nothing could be done, then told you we could give you more time, then told you we could do anything and you lost your grant, even though we told you Nov 3 doesnt apply to Pell Grants, they can be reinstated anytime...never considered having you send us your tax return so we could confirm the audit info......so let us lift the block and we will wait for award funding, our bad.</p></li>
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<p>What are our rights?</p>

<p>I do not want to ever go through this again....and I do not want anyone else to go through it. Most people tell me, they would have believed the school on the first notice and never questioned the cxl and either taken their kid out of school or sold a kidney to pay for tuition. All unnecessary. </p>

<p>Yes, it is 3:00am PST...still working on this all. I shouldnt have to. </p>

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<li>Edited to break into paragraphs.</li>
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<p>I am sorry you are going through all of this. I cannot begin to give you advice as to how to handle the situation as it has now turned out. It is up to the financial aid director of the school to handle this, and when there is a problem there, I have no idea what the process is to contact a federal processor. If you cannot get this straightened out between your contact at the school and what the feds are asking, and if registration is continued to be blocked and other dire consequences are hitting, your son and you can appeal to the Dean of Students. At least s/he can direct you to who troubleshoots these sorts of things at the school.</p>

<p>I have privately told any number of people to GET THOSE TAX RETURNS DONE EARLY when applying for financial aid. I do not know the deadlines for PELL, but at many schools, for many state and private funds, they DO NOT wait for those who file extensions. Students do lose out when those tax returns are not available . Every year kids and parents on this board have this very same issue of not being able to get the actual returns done by financial aid deadlines imposed by some schools. Though estimates are accepted, the money is simply not dispensed until verified by the actual returns and whatever else a school wants in those cases, and that you have an extension is not a good enough reason to place hold funds. They are GONE oftentimes by then to those who did make the deadlines. </p>

<p>In cases when you absolutely cannot get the return accurately done until October, FILE THE TAX RETURN THE BEST YOU CAN by the deadline dates. You can correct with 1040X later. An extension is simply not an adequate reason for a school to hold and preserve aid for students. Many DO NOT do this. </p>

<p>In your case, with PELL, it should not have been such an issue, I agree. The grant is guaranteed if the numbers verify the eligibility and the money comes from the government. However, it appears that whatever verification issues that have arisen have escalated and the financial aid officer of the school has no control when those things are so flagged, at the federal level. It also appears that the officer is not doing all s/he can to stop the in house consequences of all of this. As in all jobs, there are varying competencies and varying degrees of willingness to stretch and get to know things beyond ones own small domain. You seem to be dealing with someone who is not willing to extend beyond what is his/her job, and does not have the type of mind that comes up with alternative ideas. For example, at my son’s school, by entering the payment plan, one can avoid registration holds to some degree with less than the full term paid, but by being on schedule with the plan. In the case of the PELL, some payment on such a plan if Sonoma offers one, could have given you time in terms of the registration hold. </p>

<p>How good of an idea it is to buy time that way, I don’t know, because I do not know what the federal and school rules are in your particular situation. There are certain rules that are very difficult to move and certain federal deadlines are etched in stone. For instance, one the doors are shut in June for federal funds for that year ending, that is it, often even if it is due to mistakes on part of a school , the student/parents having done what they should have done. </p>

<p>Good luck in getting this straightened out, and I do suggest filing estimated taxes early and amending them in future years to meet the deadlines. When you set certain auto events and consequences into movement, it is often very difficult to stop that momentum and for some funds (though not PELL), they can evaporate. I’ve seen students lose out on awards simply because they were given out from under them while waiting for verifications and paperwork, to those who are on the ball and get their documentation in early.</p>

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<p>I hate to say it…but you need to do what the college financial aid department is telling you to do. And do it ASAP. In the meantime, does the school offer short term loans to those in this situation? Or can you borrow from a relative until this is sorted out?</p>

<p>This is the reason that all folks, even the self employed, should get their taxes done ASAP when their kids are in college.</p>

<p>Yes, you are entitled to that Pell if eligible…at any time during the academic year. But the college is also required to do their due diligence to be certain you have provided accuracy information. </p>

<p>When verified, it is usual for the school to ask for a tax transcript, or the link to the IRS data Retrieval tool. Get that tax transcript…and get it to the school NOW.</p>

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<p>OP, did you e-file? Is your tax transcript available? See <a href=“http://www.irs.gov/Individuals/Get-Transcript”>http://www.irs.gov/Individuals/Get-Transcript&lt;/a&gt;

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<p>Re: #1 The federal processor flags the record for verification, and the school actually verifies all of the figures through your tax transcript, W-2, etc. The school then will update the figures if there is any discrepency between the transcript and the numbers you originally submitted on the FAFSA (should they need to) and the FAFSA record is re-submitted manually by the school. Any aid updates are made at this point. </p>

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<p>Re #2: It is very standard for a school to request transcripts and W-2s. At times, the 1040 may be needed should the school have additional questions regarding figures on the transcript. The transcript is required by the federal government as the 1040 submitted by students/parents can be very easily manipulated (through TurboTax for example) to reflect different figures. The administrator might have said they can use other documents, but if you are selected for verification you are required to submit the transcript. </p>

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<p><<<<

  1. If you can pay the $4000.00 so not to block his registration, we can reimburse you when the Pell Grant Award funds after we get your Tax Transcript</p>

<ol>
<li>If you cannot come up with the money somehow, let’s get one of your approved loans to fund this and you can pay it back as soon as the Pell Grant funds later for this last semester
<<<</li>
</ol>

<p>Do one of these while things get sorted out. You really have no other choice. If you don’t, classes will fill up and your child may not get what he needs, or may end up with a really lousy schedule. </p>

<p>You have to do what you have to do.</p>

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<p>If the return has been processed wouldn’t using the DRT satisfy verification? It’s always worked for me in lieu of a tax return transcript to satisfy verification. I presume it’s still available this time of year for kid’s applying for spring semester or in this case.</p>

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<p>

Very true! Most schools are offering fewer classes than before to save cost, so the classes are filling up real fast!</p>

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<p>annoyingdad, you are right. The DRT will satisfy the transcript request and it is still available. However, depending on your filing status - it doesn’t seem to want to work for every filer. Depending on how OP answered the eligibility questions on the FAFSA, some of them might need to be changed for one to have access to the tool. OP needs to be able to answer “No” to “Have you filed your taxes in the last three weeks? Have you filed an amended return? and Have you filed your taxes in Puerto Rico, etc?” I think there is one more eligibility question but I don’t know it off the top of my head. </p>