Financial Aid Fraud

Student Financial Aid Fraud Prevention

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Definition of Financial Aid Fraud

Financial Aid Fraud is any situation where an individual falsifies information to qualify for federal, state, or institutional financial aid. This includes, but is not limited to, submission of false documentation, misrepresentation of dependency status, or identity theft. Examples of financial aid fraud include:

• Enrolling in classes and accepting financial aid based on enrollment with no intent to complete said classes.
• Reporting untruthful information, or failing to report truthful income/asset information, on the FAFSA or other financial aid documents.
• Using or attempting to use another person's identity or identifying information.
• Creating fake (a.k.a. "ghost") accounts.
• Applying for admission using fake credentials which include social security numbers, personal and student identification numbers, financial aid information, date of birth, driver's license number, address, and telephone number.
• Submitting false or misleading information on the FAFSA or any supporting financial aid documents such as misreporting income, household size, or dependency status or providing forged or altered documentation.

Montco will monitor student records for indicators of potential fraud.

When a student's account is flagged due to suspicious activity, an identity verification hold may be placed on a student's account. An identity verification hold prevents the student from registering and prevents financial aid from being disbursed. To lift the identity verification hold, students will be required to verify their identity in person at one of Montco’s campuses. Valid forms of ID include:

1. Unexpired and signed Passport
2. Unexpired state-issued driver’s license
3. Unexpired state-issued photo ID

Suspected fraudulent activity may result in:

• Immediate suspension of financial aid awards and disbursements.
• Recovery of any funds obtained through fraudulent means, including collection efforts
• A hold being placed on the student's account.
• Disciplinary action as outlined in the Student Code of Conduct
• Report to the U.S. Department of Education Office of Inspector General (OIG), which is the agency responsible for investigating federal student aid fraud.

 

Frequently Asked Questions