Kimberly Muhich is suing Vanderbilt University over a grant payback requirement, citing that Vanderbilt failed to inform her that the money guaranteed to her came from a federal grant, which requires repayment from the recipient.
The Chronicle of Higher Education reported on Sunday that Muhich filed suit in September 2011 over the grant, which would require her to either spend two years in service work for every year of financing, or pay back the amount of the grant plus interest.
Muhich began her four-year doctoral program in Peabody College of Education and Human Development in August 2010. She claims that she did not hear about the payback plan until October 2010 when she had already begun receiving her $28,000-per-year stipend included in the grant.
The work-or-pay requirement originates from an amendment made to the Individuals With Disabilities Education Act, or IDEA in 1997. Vanderbilt is accused of failing to provide any form of information on the agreement prior to Muhich accepting her grant package, breaching contract, and violating the Tennessee Consumer Protection Act.
Vanderbilt University filed a motion to dismiss claims in March 2011, arguing that no transaction took place and that Muhich provided “nothing of value to Vanderbilt in exchange for her education.” The Chancery Court for Davidson Count, Tenn. dismissed Vanderbilt’s motion, finding that the law applies to distribution of services and other things of value, including a Ph.D. education.
The specifics of the damages for which Muhich are suing are unclear. The case is expected to go to trial within six months.
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