Friday, April 22, 2011

What Happens If You Deliberately Don't Report Assets on the FAFSA?

http://www.fastweb.com/financial-aid/articles/3066-ask-kantro-what-happens-if-you-deliberately-dont-report-assets-on-the-fafsa?print=true

Failure to report assets on the Free Application for Federal Student Aid (FAFSA) is fraud. It doesn’t matter whether you keep the money in a safety deposit box or stuffed under your mattress. Failing to report the money is still fraud, since you will be making a false statement on the FAFSA in response to the question about the “total current balance of cash, savings and checking accounts.”

The penalties for providing false information on the FAFSA are severe. Per section 490(a) of the Higher Education Act of 1965 [20 USC 1097(a)], the penalties include a fine of up to $20,000 and/or up to 5 years in prison. These penalties apply both to attempts to receive and to the actual receipt of Title IV federal student aid through fraud, false statement or forgery. (The FAFSA also includes the following signing statement: “If you purposely give false or misleading information, you may be fined up to $20,000, sent to prison, or both.”) You will also be required to return all student aid, making it much more difficult for you to pay for college. Some colleges will expell students who submit falsified financial aid applications, as it is a violation of their honor code.

Thursday, April 21, 2011

What's Wrong With FAFSA Fraud

http://talk.collegeconfidential.com/2322143-post8.html

Unfortunately it hurts others too. If she becomes fraudulently eligible for federal pell grants etc. then that takes away money that others deserve, and if she accepts financial aid provided by the college, again, that is money that could/should go to other eligible students who meet the actual criteria. We all know there isn't enough money to go around to meet everyone's actual "need", so there are definitely others who are impacted by this manipulating/cheating of "the system".

It's one thing suspecting that someone fudged their numbers, but you are in a much more delicate situation when your sister-in-law flat-out told you it was a lie. I don't have any advice for you, but stories like this definitely bother me. Grrrr.....

What happens if you lie on FASFA?

http://answers.yahoo.com/question/index?qid=20090122124817AAj1qZK

Lying on a federal application is committing fraud and will put you in serious trouble when you get caught. You can be fined, receive jail time, lose any chance of getting financial aid in the future, no longer be allowed to attend the school you want, or a multitude of those things.

When you electronically sign the FAFSA there is a statement that reads something like, "Under the penalties of perjury I affirm this information is true...." If you knowingly submitted incorrect information that is fraud and you can be subject to paying back all of the money you received as a result of the fraud as well as being subject to fines, jail or both. Here is a link to a website that discusses fraud on the FAFSA

http://www.finaid.org/educators/fraud.phtml#common

Tuesday, April 12, 2011

How to Report FAFSA Fraud

http://www.ehow.com/how_7707905_report-fafsa-fraud.html

The Free Application for Federal Student Aid is funded by federal education resources. To apply, current and anticipating undergraduate and graduate level college students fill out an annual form. Types of aid includes approximately nine programs. When people engage in fraud by falsifying documents, this hurts the entire system because those who actually need the financial aid may be denied due to lack of sufficient funding to assist everyone who applies.

Instructions
things you'll need:
Verified Documentation
Notes with Factual Evidence
Names and Contact Info of Alleged Fraud Perpetrators

1. Gather all information concerning the alleged fraudulent activity. One of the more common FAFSA discrepancies concerns under-reporting assets or overstating the number of family members in college. Find documentation that supports your suspicions. If you have copies of financial documents, those will need to be provided as evidence.

2. Document all conversations that you have had with suspected individuals or others who have suspected fraud. For example, if someone directly told you that fraud was committed, write down all of the facts, such as the name, address, phone number, time, place, form and event and what exactly was said. Do this for every person who may have said something to you. Record all of the facts that you are aware of, such as any suspicious activity and income and assets that may be considered excessive and could have been under-reported. Also include any facts, figures or other information that led you to believe that fraud was committed. Authorities will need as much information as possible to follow up on the reported suspicion.

3. Review all of your information for accuracy. Create a time line to organize the information as necessary. Make a copy of all of the information that will serve as evidence. Include your notes with all of the names and contact information for all of the parties involved.

4. Consult the USAID Inspector General website to find the local office for reporting. Review the website to find the phone number for the state in which you suspect that the fraud was committed. Call the appropriate USAID Inspector General office to report the suspected fraud. Make notes during the phone conversation in case there are further instructions. It may also be helpful to have this information, should it be required to call you as a witness. Follow any instructions that you are given. Provide a copy of all of the documentation and evidence that you have to the Office of the Inspector General, according to the information that you receive from them.

Wise Positioning Vs. FAFSA Fraud

http://www.collegemadesimple.com/false-info-fafsa/


NOT OK: “Giving” assets to an aunt, uncle, or other distant relative, so you don’t have to declare them on the FAFSA.
NOT OK: Giving everyone in the family a new car, with the expectation that they’ll pay you back at a family interest rate.
NOT OK: Saying you’ll go back to school, enrolling in classes, then getting dropped for never attending and non-payment (until recently, this was a popular scam that is closely monitored).
NOT OK: Hiding your money in debit accounts held in offshore banks.
OK: Contributing the max amount to your IRA or 401(k) so that more of your assets are held in a “non-includable” retirement plan that typically doesn’t affect your EFC.
NOT OK: Understating your assets or overstating the number of children you have in college on the FAFSA.  Sounds ridiculous – but surprisingly, this is one of the most common forms of FAFSA fraud.