What happens if a person uses financial aid money for non-educational stuff?

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What happens if a person uses financial aid money for non-educational stuff?

Asked on February 26, 2011 under Criminal Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It depends on what they use it for; what the terms of the aid agreement are; and also what representations were made in applying for aid. For example, if the aid is provided for you "education" and you use it for housing at college, that is *probably* ok...but if it's specifically to pay tuition, it would not be. And if you applied to use if for education and the terms are you should use if for tuition, but instead you used it for car payments, that would be a breach of the agreement. At a minimum, it would give rise to grounds to sue you for the money's return; it might also, if you lied when you applied (never intended to use it for education) consitute fraud and give rise to criminal, as well as civil, liability.


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