It is possible, but highly unlikely. Financial aid administrators have to work within federal regulations. Every step of what they do is subject to audit. Also, they can award aid, but they cannot disburse it--the two functions are separated by law, so a financial aid administrator does not have access to your funds and could not personally use it for their own motives. Usually, when we see comments like yours, it stems from misunderstanding of how financial aid works. It is true that fly by night career schools have a profit motive and will try to get a student to sign as quickly as possible because they know that once a student has signed the agreement they are much less likely to back out. However, it's your responsibility to make that decision, so if you don't feel comfortable, simply don't sign until you are. The bunch of information they give you isn't to keep the subject convoluted--it's to make sure that you are aware of your rights and responsibilities. In order for them to disburse a federal student loan, the school is required to provide you with an award notification that shows the exact amount you are borrowing. You are also required to complete an Entrance Counseling session and sign a Master Promissory Note that gives you complete information about the terms of your loans. You also received disbursement notices that informed you of the amount that was being applied to your account, and your right to cancel the disbursement if you choose. So, the school didn't do anything with your money that you weren't informed about and gave your consent to. As for raping you for unnecessary amounts of financial aid--what constitutes "unnecessary" is a decision that you make, not the school.. The school is required to award whatever aid you qualify for up to your Cost of Attendance. The COA includes the school's charges (such as tuition and fees), but also includes amounts for other expenses that students typically have, such as books, transportation and either on or off campus living expenses. If you paid attention to that entrance counseling they made you take, you would know that you are not required to accept what is offered. If you didn't need funding for those indirect costs, then you could have chosen to accept only that amount that you felt you needed. The question of the school draining you for the whole tuition even though you didn't complete it is also explained to you--in the school's published refund policy, in the enrollment agreement that you sign, and again, in the entrance counseling that you are required to take. The school held up its end of the bargain by providing a place in their class for you. If you chose not to take advantage of that and not complete your program, that's your choice, but the school is still entitled to be paid for that place. If you ordered a sandwich in a restaurant and only ate half of it, would you expect the restaurant to reduce your bill? Then why expect it from a school? Most students prefer to use their federal student aid to pay any balance due to the school so they can pay it off over time. But, if you didn't want to do that, you could have simply paid the bill out of pocket and refused the loan. As for the question of transfer, you are awarded a specific amount of aid for each academic year. These amounts are set by Congress, so the school doesn't have any say about it. When you use it is up to you. If you chose to use part of it at the first school, then the second school can only use what is left. I have worked with many financial aid administrators and I never met one that didn't take the ethics surrounding the federal student aid system very seriously, so the problem is most likely not that they were trying to defraud you, but that you didn't understand the information that they tried to provide you. There's only so much we can do--we can provide you with the information, but in the end it's up to you to read it, ask questions if you don't understand it, and ultimately make well informed decisions.