Why do people get refunds from pell grant money? Shouldn't any left over money go back to the government?

Question

My husband and I make too much money to qualify for financial aid apparently. I take out student loans to pay for my college and still have to spend about $4,000 extra per year b/c the loans don't cover my entire tuition/books.

A classmate of mine recently got a brand new coach purse, cellphone and new clothes. She was bragging that she got the money from her $500 pell grant refund.

Let me get this straight, her college is 100% paid, doesn't have to be paid back and STILL gets a refund back to spend on purses when I can barely cover tuition?

I'm all for gov helping people afford college but shouldn't they ONLY cover her tuition/books/fees and the rest go back to the gov?? MY tax dollars essentially paid for her new "accessories"

I, on the other hand don't qualify for ANY help whatsoever b/c my husband and I made $40,000 last year by working overtime. Can anyone explain the logic of the gov giving a "refund" to people who didn't pay anything to begin with??

Right Soldier girl, my husband an I make $16,000 more than her but I also have to PAY for my education and there are 2 people in our household, so we spend more on food, gas, car insurance, water, health insurance, prescriptions etc.

I said I don't care if the gov pays for her school but WHY are they paying for her living expenses? That isn't school related. After her classes and books are paid the money should go back to the government.

Answer 1

I agree with you 100%, I work in a financial aid office, and I've seen so much walk through my door. It's not fair that there are students being cheated of an education. I say that because there are a lot of students who make too much for grants who can't go to school because they can not take out loans. There are so many people that I know of that go to school just for the money. I think it should be about being a first time student and getting a degree. When it comes to grant money being refunded, I think it should be sent back to the government. It should be used for education only. A guy at my school bought a motorcycle with his refund.

Now, I think it's wonderful for students to have that opportunity to go to school that can not afford it. But you know, if you're not that financially stable maybe there should be other things on your mind than going to school. Once again, if you're in the middle class, your screwed. I think there should be a way to report abuse of refunds like you stated about your classmate. Maybe one day...

I do sympathize for you. Just keep your head high and look forward to that degree. You earned it. In the end, chances are you'll end up with the better job than your "Coach" classmate.

Answer 2

First of all, the left over money is suppose to be used to support yourself while you are in school. You can use the money to cover living expenses. But I don't believe that expensive clothes and purses are what they had in mind, but it is hard to prove that the money was spent incorrectly.
The good news is that because you are in school, you probably didn't make as much this year right??? Well, you can re-fill out the FASFA and get your info changed. You may be able to get a Pell grant, or at least more in student loans ( I know you have to pay them back, but at least it will help right now). Talk to your fin aid office and see if they can help you.

Answer 3

grants are giving to students who display a financial need. When her tuition and fees were paid for she may have money left over. She could have saved the money for next semesterr, but she chose to spend on buy things for herself.

What can you do, (1) lower your agi by finding deductions that you may be eligible for and increase paid taxes, (2) if you and husband make a combined 40,000, you may want to forgo your job, (3) quit working overtime...then you too should be able to get some grants

Answer 4

Basically what happens is not only is tuition, rooom, board, and books covered, but also transportation, additional fees, home computer, health insurance, etc. anything that is necessary for you to complete your education. Although she spent the money on other things, she probably listen some of these things and therefore the government will pay based on her income. I know it doesn't seem fair but she did qualify for the money based on her income.

Answer 5

Whether she says that she spent the money on expensive clothes or purses or whatever, essentially, the money that pell grant refund gave her is going to help her with her living expenses. One way or another those bills are going to get paid, and one way or another she was going to shop. You're worried about 4,000 maximum grant that she was allowed. In order to qualify for that much, she would have had to make under 20,000 for the year. You're still 16,000 up on her, so I think you're still better off. And to say that you 'essentially paid for her new accessories' is a bit overstated, don't you think? I mean, in the grand scheme of taxpayers money, you MIGHT have contributed 1 cent for her education. I'd be proud to say that I was helping to educate Americans.

Answer 6

i dont understand it seems that you and your husband make good money and you still cant pay for school. honey dont play the victim she probably works too and pay taxes maybe not as much as you, so therefore i think its very fair.