Expert: Tim G - 4/24/2009

Question
Hello, I applied for Sallie Mae loans before attending a school, then after I had
started the courses, the school informed me that they had not received the
money from Sallie Mae because they hadn't filed the proper papers, and now
they have stuck me with the bill.

I would have never attended the classes, if I had to pay them out of pocket,
as I couldn't and still cannot afford them, which is why I got the loan.

Does a school have the right to charge me in this situation? They were the
ones who mis-filed my paperwork, and did not notify me.

Answer
Yes, they can charge you. don't worry though. Fill out the fafsa http://www.fafsa.ed.gov/ . The school has to properly fill out paperwork when the fafsa (isir) is sent to them. This enables you to receive grants, and loans (loans that will be re-setup with sallie mae).  If the school is still giving you trouble, report them to the dept of ED.  By law, the school can bill you but they have to fix the paperwork error themselves if you submitted a fafsa (either by you re-filing out paperwork or by them submitting the correct forms).

If they are not working fast enough, you could try:

"Federal Student Aid Information Center
- Student Financial Aid program information
- Teacher Loan Forgiveness information
- Order Materials: Free Application for Federal Student Aid; Funding Your Education; The Student Guide
  

1-800-4FED-AID (1-800-433-3243)"

OR

"The Office of the Inspector General (OIG) provides a hotline for individuals to call to report fraud, waste, or abuse involving federal student aid funds or Department of Education funds, programs, or employees. Anyone having such knowledge should call 1-800-MIS-USED (1-800-647-8733). All callers can be assured of absolute confidentiality. Reports can also be submitted via email (to oig_hotline@ed.gov) or the OIG online complaint form."

http://www.ed.gov/about/contacts/tollfree/index.html?src=ln