Michigan Colleges Struggle When Students Drop Out, Keep Aid
"Students who get federal grants but don't attend school are leaving Michigan colleges with a bill worth millions of dollars. When students don't spend the money on approved expenses, colleges, especially two-year schools, are turning to tuition increases to repay the federal government, a newspaper reported Sunday," the Associated Press
reports. "Henry Ford Community College in Dearborn is on the hook for $4.1 million. Oakland Community College in Southfield owes $700,000 from last semester after 1,000 students with grants didn't show up for classes, the Detroit Free Press reported. Students who don't use the full amount of their Pell Grant often get a check for the balance from the school. But schools can be held responsible if students then drop out and don't spend the money properly. … Karen McCarthy, an analyst at the National Association of Student Financial Aid Administrators, said two-year colleges are vulnerable to abuse because the tuition is less than at a four-year school, leaving some grant money left over for students. "If the costs are high, the students won't get any of their money back," she said."