FBI Investigates California College That Overpaid Financial Aid to Some Students, Underpaid Others

Student Loan Girl — Tue, 14 Oct 2008 01:32:00 GMT

A California community college is being investigated by the FBI and the Department of Education for overpaying students more than $327,000 in financial aid during the 2005–06 school year, reports the Contra Costa Times (“Berkeley City College Overpaid Financial Aid,” Oct. 8, 2008).

Berkeley City College, under former financial aid director Robert Vergas, was also found to have underpaid Pell Grant recipients by nearly $40,000.

The federal government has ordered Berkeley City College to repay the Department of Education for the funds it overpaid to its students. The school has already repaid $40,000 and will pay about $37,000 per quarter until the balance is paid off.

The school must also pay the affected Pell Grant recipients the remainder of the grant awards that they should have originally received.

An independent audit of Berkeley City College found, in all, more than 400 mistakes in the files of 1,135 financial aid recipients.

Vergas, who retired in April shortly before he was to be fired by the community college district for “negligence and incompetence,” has denied any wrongdoing and said he is being blamed for deficiencies in the school’s financial aid process.

Share this post: email this | del.icio.us | reddit

Student Loan Blog : Berkeley City College

FBI Investigates California College That Overpaid Financial Aid to Some Students, Underpaid Others