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Colleges Struggle When Students Drop Out, Keep Aid

Posted at: 02/17/2013 5:08 PM

DEARBORN, Mich. (AP) - Michigan colleges are stuck with a bill worth millions of dollars when students with federal grants drop out but keep the cash.

The Detroit Free Press (http://on.freep.com/11P8aiw) says Henry Ford Community College in Dearborn likely will raise tuition, partly to repay $4.1 million to the federal government. Spokesman Gary Erwin says two-year colleges have been hit "particularly hard."

Students who don't use the full amount of their Pell grant can get a check for the balance from the school. But schools can be held responsible if students drop out and don't spend the money on approved expenses.

The Free Press says roughly 1,000 students got checks last fall but didn't show up for classes at Oakland Community College. The aid adds up to $700,000.

Information from: Detroit Free Press, http://www.freep.com

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