If indeed your son provided the proper application for financial aid and, in reliance on Heald submitting the application on a timely basis, arranged to attend classes in lieu of attending another school, working, etc., then the school is liable. It appears that Heald is trying to collect the $3,000 as fees and tuition. They have every right to collect this only if your son actually took classes and received a benefit from Heald. See: www.higheredjustice.com