My wife is finishing her last semester of graduate school (Doctorate) at a private university in southern California. At the beginning of the year, the school sent a financial aid award letter confirming the amount of subsidized and unsubsidized Stafford loans (Federal Title IV funds) and the amount of private grant money to be awarded to my wife's student account. We planned our budget and our life for the year around these expected funds.
The funds posted first semester, and we used the excess for living expenses. This last semester, the funds posted (as were promised at the beginning of the year), and we withdrew the excess funds for living expenses again. This time, with one month left in the semester, the school contacted us to let us know that they made a mistake in calculating aid eligibility for the year.
The school's courtesy call informed us that there would be a correction made to the school account. It now reflects that we owe the school over $2,000 with only one month left until graduation. My wife was informed that if this amount is not paid in full by graduation date, the school will withhold both her transcripts and her diploma.
Negotiations with the school have failed.
Questions:
* Should this be brought before a small claims court, or should this be presented as a general civil action (and with an attorney)?
* Are there any torts involved here (aside from the breach of contract) that would make it beneficial to retain counsel and go to general civil court rather than small claims?
* Could this be criminal extortion by the University (pay us the money or we will hold you back in your career)? If yes, who does this get reported to?
* If there was a class of people similarly situated (other students who are getting screwed), would a lawyer take this case as possible class action?
* Will we lose any rights if we pay (using our credit card) now and sue later, so as to avoid the threat of delay to career advancement?
The funds posted first semester, and we used the excess for living expenses. This last semester, the funds posted (as were promised at the beginning of the year), and we withdrew the excess funds for living expenses again. This time, with one month left in the semester, the school contacted us to let us know that they made a mistake in calculating aid eligibility for the year.
The school's courtesy call informed us that there would be a correction made to the school account. It now reflects that we owe the school over $2,000 with only one month left until graduation. My wife was informed that if this amount is not paid in full by graduation date, the school will withhold both her transcripts and her diploma.
Negotiations with the school have failed.
Questions:
* Should this be brought before a small claims court, or should this be presented as a general civil action (and with an attorney)?
* Are there any torts involved here (aside from the breach of contract) that would make it beneficial to retain counsel and go to general civil court rather than small claims?
* Could this be criminal extortion by the University (pay us the money or we will hold you back in your career)? If yes, who does this get reported to?
* If there was a class of people similarly situated (other students who are getting screwed), would a lawyer take this case as possible class action?
* Will we lose any rights if we pay (using our credit card) now and sue later, so as to avoid the threat of delay to career advancement?
