University trying to make me pay for Hope Scholarship

[mSanchez611]

State: Georgia
Debt amount: $3,050
Situation: Disputing alleged debt from university over Hope Scholarship


Hello. I graduated from a university. Right before I graduated, they claimed that I had over-withdrawn funds because I had been given a Hope Scholarship when I was past the time frame for me to be eligible and now owed the school $3,050. At the time, they only told me how I could go about paying them, but didn't mentioned the details of why I got this alleged debt and didn't mention I could dispute the claim.
A year goes by and I receive a final notice that I have to pay by the end of the month. Luckily, I'm dating a law school student now and he advised me to send in a legal letter of debt dispute, which I did. After that, the debt collection company basically said that the ball was in my university's court, and it was up to them to close out the debt collection.
I disputed the school's alleged debt under the Hope's scholarship's regulation that,
"114.3. Institutional Repayment.
1. In the event it is determined that an Eligible Postsecondary Institution knowingly or through error certified an ineligible student to be eligible for HOPE Scholarship, the amount of such scholarship shall be refunded by the Eligible Postsecondary Institution to GSFC."
The school admitted that they knew this, that they had paid GSFC off but, "Correct and that is what we did, but that does not mean that the student is not required to now pay the institution back."
I completely disagree, as I don't hold that the student should have to pay for a university's error. I accepted a scholarship, not a loan. I was given this scholarship past the allotted time frame, even though I didn't apply for an extension. Besides originally applying for Hope, whose requirements I all met and kept, can they even claim to have a contract with me to try to collect this "debt"? How do I fight this and make them drop it?
I was getting scholarships because I didn't have the funds to afford school. I still don't have the money. It took me 7 emails, with the last one saying I'd sent a legal letter of dispute, for them to finally reply to me. Since then, it's been 2 months since they last replied to me and this ridiculous waiting game is skyrocketing my anxiety. Please help me.

 

[FlyingRon]

This isn't Monopoly. There's no Financial Aid error in your favor, collect $3000. The University doesn't make up the Hope or the rules. They assume you were legally eligible for it. If they don't get their tuition from the state, they will get it from you.

The only issue is whether you were indeed ineligible for the semesters in question.

 

[mSanchez611]

I wasn't eligible for it. I graduated from high school in 2009. Hope Scholarship only lasts (at the time) 7 years (although I heard it got extended recently). I graduated in 2017, but my Hope eligibility expired in 2016, so they charged me for a full year's Hope. In order to get an extension, you have to apply for it by filling out a form. I didn't apply for an extension, hence my asking if they even have a contract with me. It isn't Monopoly for the university either. They don't get a 'get out of jail' free card when they screw over one of their students.
Edit: I should add that I was told I had been awarded an extension, no reasons given. Then they took it back.

 

[FlyingRon]

You owe the money. You signed up for classes. You are obligated to pay, either by being eligible for a scholarship or ponying up the money yourself.

 

[mSanchez611]

I don't think I should be liable for it since, as I said, they gave me an extension without asking me, then claimed that I had over-withdrawn funds when they took it back. I went to/graduated from university in 3 years and never dropped below a 3.7 GPA, and I'm exactly the type of student the Hope Scholarship was meant to help. The way I see it, they took out money with me as a co-owner, without my permission, telling me it was a gift - not a loan, and pinned the payment on me.

 

[justalayman]

I don't think I should be liable for it since, as I said, they gave me an extension without asking me, then claimed that I had over-withdrawn funds when they took it back. I went to/graduated from university in 3 years and never dropped below a 3.7 GPA, and I'm exactly the type of student the Hope Scholarship was meant to help. The way I see it, they took out money with me as a co-owner, without my permission, telling me it was a gift - not a loan, and pinned the payment on me.

They sent back to the source what they were required to send them. That means there is a void that should be filled with money. Since you are always liable for your school debts regardless of who pledges to pay, thst means you need to fill thst void with your cash.

How about this:

Offer to allow them to nulllfy those classes and along with that your diploma and see what they say.

 

[PayrollHRGuy]

The university provided a service (the classes) they have not been paid.

 

[not2cleverRed]

They sent back to the source what they were required to send them. That means there is a void that should be filled with money. Since you are always liable for your school debts regardless of who pledges to pay, thst means you need to fill thst void with your cash.

How about this:

Offer to allow them to nulllfy those classes and along with that your diploma and see what they say.

Well, it's not like OP'll be able to get an official copy of the transcript while owing the money...

 

[justalayman]

Well, it's not like OP'll be able to get an official copy of the transcript while owing the money...

All many employers care about is the diploma.

 

[LdiJ]

I don't think I should be liable for it since, as I said, they gave me an extension without asking me, then claimed that I had over-withdrawn funds when they took it back. I went to/graduated from university in 3 years and never dropped below a 3.7 GPA, and I'm exactly the type of student the Hope Scholarship was meant to help. The way I see it, they took out money with me as a co-owner, without my permission, telling me it was a gift - not a loan, and pinned the payment on me.

You could run the scenario by an attorney experienced in education matters. I am not suggesting that you hire one because the amount of money involved does not warrant hiring an attorney. However, pay for 1/2 hour of the attorney's time to get their opinion on the matter could be valuable.

 

[not2cleverRed]

All many employers care about is the diploma.

The university also can withhold the diploma if you owe money.

In fact, I personally know someone that went to check at the bursars before graduation and found a hold over 2 cents ($.02).

 

[mSanchez611]

They sent back to the source what they were required to send them. That means there is a void that should be filled with money. Since you are always liable for your school debts regardless of who pledges to pay, thst means you need to fill thst void with your cash.

How about this:

Offer to allow them to nulllfy those classes and along with that your diploma and see what they say.

Yes, but that typically applies to actual loans and fees. I didn't apply for a loan. I didn't ask for a loan. I was given scholarship, basically told that it was a freebie, then had it yanked back. What I'm questioning is why I should be liable and not the school, as it was the school's unasked for mistake and I don't have that money. They put me in this situation, why should I be responsible? There wasn't a contract. I didn't fill out any forms saying that I would be held accountable for any money. It was a scholarship, and the extension was done without my consent and unknowingly, so that should make any possible contract non-binding, right? Because I looked up the Hope Scholarship requirements and regulations and nowhere does it say that the student is liable. As I quoted, the school is the one liable. If it was supposed to be the student, they could have just as easily worded it as such.

 

[mSanchez611]

The university provided a service (the classes) they have not been paid.

No. It's more like I paid for my meal, they threw in a supposedly free desert, I ate it, then they changed their mind and charged me for it anyway, despite my not having the money to pay for it. The important thing is that I would not have accepted it had I known I would have to pay it back. I would have found other means to pay for my classes, such as taking on a second job, or taking out a normal loan that would allow me to pay it over time and still get my transcript. That choice was completely taken out of my hands. It's no different than if the school had forced a normal loan on me...which shouldn't be legal. At the start of the semester, they always had me sign into my Banner Web and manually accept any loans and the specific amount. They didn't do that with this. There was no informed consent.

 

[LdiJ]

No. It's more like I paid for my meal, they threw in a supposedly free desert, I ate it, then they changed their mind and charged me for it anyway, despite my not having the money to pay for it. The important thing is that I would not have accepted it had I known I would have to pay it back. I would have found other means to pay for my classes, such as taking on a second job, or taking out a normal loan that would allow me to pay it over time and still get my transcript. That choice was completely taken out of my hands. It's no different than if the school had forced a normal loan on me...which shouldn't be legal. At the start of the semester, they always had me sign into my Banner Web and manually accept any loans and the specific amount. They didn't do that with this. There was no informed consent.

Again, run it by a local attorney that specializes in education matters.

 

[justalayman]

Yes, but that typically applies to actual loans and fees. I didn't apply for a loan. I didn't ask for a loan. I was given scholarship, basically told that it was a freebie, then had it yanked back. What I'm questioning is why I should be liable and not the school, as it was the school's unasked for mistake and I don't have that money. They put me in this situation, why should I be responsible? There wasn't a contract. I didn't fill out any forms saying that I would be held accountable for any money. It was a scholarship, and the extension was done without my consent and unknowingly, so that should make any possible contract non-binding, right? Because I looked up the Hope Scholarship requirements and regulations and nowhere does it say that the student is liable. As I quoted, the school is the one liable. If it was supposed to be the student, they could have just as easily worded it as such.

That applies to grants as well and scholarships if the entity providing the funds puts such rules on their money, which they apparently did in this situation.


Seriously, don’t you have the maturity to take responsibility for knowing what money you are due and not enrolling in classes if you believe you don’t have the money available?

The scholarship program doesn’t have a right to say the student is or isn’t liable for a debt to the school. That is between you and the school.


And if you want to argue conract issues;

You registered for and attended classes. That makes you liable for payment for the classes. The school applied for, on your behalf, scholarship money. Since it was denied, that leaves you owing the money.

And I’m pretty confident in saying that yes, you did acknowledge financial liability for the classes. That is pretty standard language in a schools application.


And like I said; contact the school and ask if they will nullify the affected classes and rescind the degree in exchange for cancelling the debt. That will take care of the debt, if they accept the offer.

I suspect you want to be excused from the debt as well as retaining your degree. That would be inequitable.