I was awarded loan money for a summer semester in my grad program. I failed a class and was forced to take a year off, returning the following summer to retake the class. I kept up communication while away to make sure my return was seamless. Upon return, I was told that last summer was not paid for, and I would need to pay out-of-pocket in order to proceed, as current loan awards could not legally be used for last years semester. I had never given permission to return the awarded money, and my online account showed that I was paid up all year. The school claims that I never filled out a form stating that I wanted to use the money for my classes, even though I would not be returning in the fall. I don't know how the next semester's classes are relevant. The amount was approx $12,000
An institution correcting what amounts to accounting discrepancies when conditions allowing a loan are altered for some reason, does not mean that they acted improperly. However, if the terms of the loan did not allow the school to act as it did, and even so, if you detrimentally relied upon their error and lack of alacrity in correcting it, causing you harm, you may be able to fashion a claim. Contact a contracts attorney with all the pertinent documentation.
This student has not indicated whether the "communication" with the university was in writing and whether the communications with the school included the registrar's office, accounts receivable and the financial aid office.
This student needs to both locate each and every written communication between the school and himself and contact a debtor's rights attorney., Without looking at the contracts this student signed (while this author has his doubts as to actionability), it would impossible to opine as to whether the student can in-fact sue the school).