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Financial Aid and Unemployment in CA

by Cacoon

If someone collects unemployment while attending university (in California), how would they ever get caught? Unless....they were collecting financial aid. My question is, can/will the office of financial aid report you for collecting unemployment? It shows up on your FAFSA and I just so happened to know someone whose FAFSA was "selected" for verification...whom also collected unemployment benefits while attending school. Will the office of financial aid report this to the IRS? Do they select for verification only to make sure that the numbers are correct? All tax forms must be turned in to their office before aid is approved for the next year. Sigh.

Financial Aid and Unemployment in CA

Hi Cacoon,

Interesting spin on UI fraud question and income tax fraud.

Unemployment benefits are not a subsidy to attend school, unless the department says so, but usually a short-term taxable entitlement you may receive after losing your job through no fault to look for new work, not attend school ..

In the case of UI benefits fraud .. work is the priority .. not attending school.

I'm not an expert on the how any kind of fraud is detected including financial aid from FAFSA, but I do understand the concept of being selected for a random audit to detect fraud.

I've only presumed it wouldn't behoove the different government agencies to put up many walls between the reporting systems that collect different types of data on our activities.

I even let my imagination conjure up a possible scenario for how google could use or sell the data they collect, with those able to use it in conjunction with their own data against UI recipients. I posted about it on facebook.

Just over 5,000 signatures on that petition .. My own family thought I was being reactionary and what really hurt .. slightly paranoid.

I simply think apathy sucks and is at the bottom of our current crisis! And I think this crisis is the result of the relaxing of ethics in general.

I suspect anyone can get caught in the scenario you presented, much the same way anyone gets caught. The evidence is data or documentation that an act of fraud was committed.

But, here's the thing .. ignorance is a very poor arguing point.

So, why do it at all if that little voice starts asking reasonable questions? That voice is intuitive and usually, trustworthy.

I do not believe knowingly, getting away with something against the rules deserves a merit badge, but we all know a smug cheat that would disagree and boast to anyone that will listen and even encourage other to play light with the rules

I've never been naive enough, apathetic enough, or smug enough, to think that the internet and the computer hasn't made anyone with personal access to both as naked as a new born baby when they do something wrong .. depending on advancing technology and how deep someone cares to dig.

Take the high road. Inform yourself after you
hear the little voice .. so you don't have to worry about some willful or ignorant wrongdoing coming back to bite you in the ass or, creating another regret to live with.

Life can be simpler if we aren't apathetic.

The company I used to work for boasted about unemployment being the "fertile field" for data collection for their "cash cow", income and employment verification.

This is when I became totally aware .. there are no more secrets .. except for those a soul can keep.

My former employer was trying their best to get access to IRS records to aid in their quest to verify the income records of the self employed .. at least that was their public reason for wanting it.

But then, the company I worked for was bought by one of the three major credit reporting agencies and that is when awareness expanded into reality.

What they did, with all this data never really concerned me until the credit market froze up and I learned via some human's error, that they were inventing new and questionable products to use the I&E data for.

Right around the same time I also received an unemployment fraud overpayment hearing notice that had an extensive employment report as evidence.

Seems the state of Texas ordered the evidence from the I&E verification service .. the "cash cow" division of the company I worked for.

Product potential .. Behind on your bills and wonder how debtors find out where you live and work to now garnish your wages? Well, it's probably a report product sold to debt collectors.

So, why wouldn't I imagine the possibilities of how various Federal reporting systems (just one example) and state reporting systems (just one example) combining or joint venturing with business owned data sources?

Might not sensitive and once hard to access information be bought/sold or reciprocally shared for purposes mutually beneficial?

I generally refuse to talk about anything fraud .. because I don't want a gazillion questions from fraudsters about how to commit it.

I'll wait to be paranoid when congress repeals the constitution.

Until then, I'll just keep on running a scenario through the uncategorized information I do have scattered about my brain while I keep believing on faith that I'm still fortunate to live in this country and have the freedom to use the First Amendment .. as long as I have the good sense to not be blind to those that work diligently to erode that document in their own lust for wealth or even solvency of government.

In the meantime .. if there's a data reporting system .. there's a way to find out all about what you're doing that isn't in compliance with the rules we're supposed to follow when accepting grant money, student loans or financial aid monies.

And I would presume that the IRS would get involved because I think I read qualifying for FAFSA and living stipends is contingent upon income .. such as a parent's income.

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