I was told that the school reports that the pell grant is owed to the DOE,is this true? On my records it is showing I owe a amount for a college at I went to in 2003. Of course I don't remember that far back so I call the college and they show nothing about me even going there. Can I dispute this collection since they have no proof I owe any money?
A Pell GRANT is just that a grant (purposed gift per se) that does NOT have to be paid back like a student loan. I assume there was no fraud or default such as taking the funds but not attending class which would be handled by the Dept of Education, not the school.
Edit/Add: Due to my employment I have mixed feeling on Pell Grants, but I won't get into that.
I would contact the Department of Education. The school you attended may no longer have records of this but I guarantee the DOE does. I went through something similar where my pell was over disbursed to the University of Phoenix. Sure enough it was reflecting on my reports and was updating until I paid it. I paid it and it was removed after 30 days or so.
If your reason for dropping was Medical contact DOE and tell them. You will have to provide proof of the condition and if you were hospitalized those records or if a doctor ordered bedrest no activity then a letter from them. You should have been asked for that by the school but who knows if it was put in the file.
Please note I am saying the following because your screen name indicates you are a woman. If the illness was bedrest related to a pregnancy, it will be an easy fix. bed rest is a common order for many women with difficult pregnancies. I am not asking your medical history, just pointing out that is an easy fix as is diagnosed depresssion. Other like chemo are easy too.