Can a school charge me for financial aid funds it mistakenly awarded me?

Due to a processing error, my community college mistakenly allowed financial aid funds to be disbursed to me. After the error had been discovered, I was ordered to pay back the excess funds, which had already been used to pay for 2 semester’s worth of classes and books. Initially, I made attempts to contact people in administration, but soon became preoccupied with finishing my transferring process to a university. I haven’t followed up on the matter for a year and now I’ve been given notice my debt will be sent to a collection agency in 1 month.

Asked on March 4, 2012 under Bankruptcy Law, Texas


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