US and Vt. University Settle Student Aid Fraud - FOX44 - Burlington / Plattsburgh News, Weather & Sports

US and Vt. University Settle Student Aid Fraud

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MONTPELIER, Vt. -

 (AP) - Vermont's Norwich University is going to pay more than $1.2 million in penalties after an audit discovered a university employee had been helping students get more federal student aid than they were entitled to.

The U.S. Attorney's office says the investigation into Norwich University's student aid practices arose in 2008 following an audit by the U.S. Department of Education.

 The investigation determined that a high ranking official with the Northfield university, who has since been fired, had been instructing students to assert that they were independent of their parents, even when they were not.

 The extra financial aid was used to pay tuition at Norwich.

 Norwich did not admit to any institutional fraud, but acknowledged its students receive a significant amount of federal aid to which they were not entitled.

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