Student Aid Abuse Act

Student Aid Abuse Act - Provides that any person who receives funds under the provisions of this Act for the making of grants or loans as provided in this Act shall be deemed a custodian of public funds and shall not disburse or otherwise use any of such funds for any purpose other than as expressly authorized by the provisions of this Act.

Provides criminal penalties for: (1) payment to any student of any amount as a loan or grant under this Act except by check to the student or to an institution of higher education, or both, and no such check shall be negotiated unless personally endorsed by such student; (2) deceiving or defrauding any student attending or intending to attend an institution of higher education with regard to: (A) benefits which may be available under any Federal student aid or loan or loan guarantee program; or (B) tuition and fees for which Federal student aid or loans or loan guarantees are available or rights to refunds of such tuitions and fees; (3) knowingly and willfully making or causing to be made any false statement or representation of a material fact in any application for any guaranteed student assistance loan, or in any application requesting interest or special allowance payment by a lender for any guaranteed student assistance loan.

Provides that any student enrolled in the programs of any educational organization or institution operated for profit who receives a Federal student assistance grant or loan, and who withdraws from such programs, shall be entitled to a pro rata refund of tuition and fees, and any such refund shall first be applied to reduction of such student's obligations under Federal student loan programs.