Colleges Struggle When Students Drop Out, Keep Aid

By: Associated Press
By: Associated Press

DEARBORN, Mich. (AP) -- Michigan colleges are stuck with a bill worth millions of dollars when students with federal grants drop out but keep the cash.

The Detroit Free Press says Henry Ford Community College in Dearborn likely will raise tuition, partly to repay $4.1 million to the federal government. Spokesman Gary Erwin says two-year colleges have been hit "particularly hard."

Students who don't use the full amount of their Pell grant can get a check for the balance from the school. But schools can be held responsible if students drop out and don't spend the money on approved expenses.

The Free Press says roughly 1,000 students got checks last fall but didn't show up for classes at Oakland Community College. The aid adds up to $700,000.

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  • by Anonymous on Feb 18, 2013 at 04:13 AM
    1000 students who got their money early that was not loans. Sounds like there was a bad policy issue. When I went to school, I was not allowed to obtain extra funds until after the last day to drop classes.
  • by Name Location: Location on Feb 17, 2013 at 05:07 PM
    That is just bad management of giving out funds. These schools should be smart enouhg not to give out more aid than the students is eligible for and not post the aid until after the last add drop date..
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