American Intercontinental University Los Angeles - online I Took unauthorized Pell Grant payments. Los Angeles California

I am the victim of a fraudulent online school and possibly negligence by my lender/servicer ACS. I signed up with AIU in May of 2006. I contracted to pay a monthly tuition of $200.00. Six months later my tuition was increased to $350.00 a month and six months after that it was increased to $550.00. I could no longer afford to continue my schooling. The tuition was too high. I had paid them $3,255.78 in a period of twelve months. The school kicked me out of the course. I found that the school was taking unauthorized funds from my Stafford Loan and not advising me per the law. I contacted the Department of Education and was advised that the school must also inform the student of his or her right to cancel all or a portion of the loan. In reviewing all my records, I can find no record of the school complying with these laws. When I confronted the school with the above facts they manufactured bogus emails telling me of deductions. They were sent to an unknown (by me) email address and a wrong home address. Knowing the above facts, I would have opted out immediately and saved myself a lot of grief. I never completed ONE course, paid them $3,255.78 and now have a student loan debt of $24,690.73.