3 Reasons You Could Be Accused of Student Loan Fraud

 Posted on March 31,2022 in Fraud

Most students have little choice but to take out student loans. College, let alone graduate school, can be wildly expensive. Gone are the days when a student could work their way through college with a part-time job. For most, taking out federal student loans is the only way they can hope to access higher education. However, students and their families must be careful when filling out the Free Application for Federal Student Aid (FAFSA). Providing inaccurate information could lead to criminal charges, as could misusing student loan funds. This type of fraud is nearly always handled at the federal level. If you are facing charges for student loan fraud, it is important that you work closely with a skilled federal criminal defense attorney. 

What Actions Can Lead to Fraud Charges Relating to Student Loans?

It is easier than you may think to find yourself charged with fraud after applying for or receiving student loan funds. A conviction could lead to prison time, and you could lose educational opportunities in the future. Colleges may be very reluctant to admit someone who has this type of conviction on their record. Even finding employment may be difficult. 

These types of situations can lead to fraud allegations: 

• Inaccurate application information - It is very important that all the information on your FAFSA is correct. Reporting inaccurate information could lead to charges, even if you made a genuine mistake. Misreporting your income or your family’s income is a red flag.
• Not going to school - Taking out a student loan and then not going to school can get you accused of committing fraud. You may have intended to go to school, but been prevented from doing so by some unforeseen circumstance, like a serious illness or family problems. In these situations, you may truly need the money to cover medical bills or family and personal expenses, like food and housing. However, keeping student loans without actually attending school can be considered federal fraud. 
• Falsified academic records - Some types of student loan or scholarship applications will ask for things like test scores or your G.P.A. The better your proven academic ability, the more money you are likely to receive. It can be tempting to fudge the numbers a bit, but doing so is a form of fraud.

If your student loan application led to charges rather than educational funding, you are in a serious situation. Your number one priority should be securing good legal representation. 

Contact an Illinois Federal Fraud Defense Attorney

At theLaw Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, we are highly experienced at defending people against federal fraud charges. Our Chicago federal fraud defense lawyers will do everything in our power to protect your freedom and future. Call 312-629-0669 for a free consultation. 

Source:

https://studentaid.gov/help-center/answers/article/student-fraud