Legal Question in Consumer Law in California

Private University makes mistake in Financial Aid

My wife is finishing her last semester of graduate school (Doctorate) at a private university in southern California. At the beginning of the year, the school sent a financial aid award letter confirming the amount of subsidized and unsubsidized Stafford loans (Federal Title IV funds) and the amount of private grant money to be awarded to my wife's student account. We planned our budget and our life for the year around these expected funds.

The funds posted first semester, and we used the excess for living expenses. This last semester, the funds posted (as were promised at the beginning of the year), and we withdrew the excess funds for living expenses again. This time, with one month left in the semester, the school contacted us to let us know that they made a mistake in calculating aid eligibility for the year.

The school's courtesy call informed us that there would be a correction made to the school account. It now reflects that we owe the school over $2,000 with only one month left until graduation. My wife was informed that if this amount is not paid in full by graduation date, the school will withhold both her transcripts and her diploma.

Negotiations with the school have failed.


Asked on 4/10/07, 6:16 pm

1 Answer from Attorneys
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Private University makes mistake in Financial Aid

Have they provided any written explanation for the disparity? If they are correct and a mistake was made, you may be stuck with the difference. However, legal representation may help push along negotiations in your favor. Setting up a payment plan comes to mind. If you would like to call my office to discuss your options, feel free to do so. Good Luck.

-Bryan Becker, Esq.

8772018728

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Answered on 4/10/07, 8:17 pm


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