Can a college issue me a check for the positive balance on my student account and then make me pay them back the amount they gave me plus interest?

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Can a college issue me a check for the positive balance on my student account and then make me pay them back the amount they gave me plus interest?

I recently received a bill from a college for a repayment. I never signed any papers for them to put me in any debt. They are claiming that I owe them the money because I wasn’t eligible for the Federal Grant that was issued to me. So I asked them why was I issued the check? If I wasn’t eligible for the grant in the first place then why am I being notified of this 3 months after I stopped going to the school? They said they don’t know but I owe them the money that they had to pay back plus interest? Can they do this if there was no contract signed?

Asked on August 22, 2012 under Bankruptcy Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I suggest that you tread carefully with respect to some claim that you owe a college some money where no contract was signed. From what you have written, you may be subject to a "scam". I suggest that you contact someone with this college about the bill that you received and set up a face to face appointment with someone with it to discuss your questions and concerns.


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