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.....
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