College acts against potential financial aid fraud

LANSING, Mich. — A computerized review alerted Lansing Community College to 174 suspicious financial aid applications so far this year and may have saved it up to $275,000, according to the Lansing State Journal.

The computer program looks for traits that may be associated with fraud, such as registering for unlikely combinations of classes or multiple applications that use the same address, the Journal reported.

The college then asks those applicants to come in for a personal review. To date, 68 of the 174 didn't show up, and eight were denied aid, according to the Journal. About 60 more remain under review.

The college disbursed more than $104 million in aid in the most recent year, compared to $36 million in 2005-2006.


The Lansing State Journal, "LCC cracks down on financial aid scams," Nov. 14, 2010


Mackinac Center for Public Policy, “Do You Need Government Money to Attend College?” April 26, 2010