Do colleges ever ask for grant money be repaid if you have a large spike in personal income?
My son has received grant money from his college the last two years. This year (2006) my personal income had an unusually large spike. Do colleges ever ask for past grant money be returned do to a large change in personal income?
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I do not think that they can ask for the money back. This is a good question to ask your son’s college. Your income will affect next years grants and possible even this coming semester.
No, that is why they call it a "grant." Loans, yes…Grants, no. If the money is substantial, the college could approach you for a donation for a new stadium or something, but I have never heard of any college asking for pay back on a "grant."
Once it’s yours it’s yours. One of the things they consider is what you had projected for 2006 when you applied in 2005. If your actual is much larger than projected, they may claim fraud. It would be very rare that they do this, but if you made let’s say you made 400k in 2004, then 50k in 2005, then 400k in 2006, they may take issue with the sudden dip. However, if you were making 50k for the past few years, and got a nice raise to 75k, they won’t do anything. Just realize that when you apply next year, you may not get as much money.