I am writing in response to your question as to what FERPA rights an individual has who defrauded the institution out of financial aid via fraudulent admissions documents. As with so many FERPA questions, it depends.
As you are aware, FERPA only applies to the records of individuals who are or have been a student "in attendance" at the educational institution. Thus, if the individual in your case was considered a student in attendance at the University, then the student would retain FERPA rights with respect to their education records.
However, you may want to review the . In the letter, the Department addressed whether individuals involved in financial aid fraud schemes qualify as "students" entitled to FERPA protections. The Department’s analysis distinguished between different categories of fraud participants. The Department concluded that individuals who never actually attend classes or participate in educational activities, but merely use others' identities to obtain financial aid, do not qualify as "students" under FERPA because they are not genuinely "in attendance" at the institution.
The more complex question involved ring leaders who complete some coursework in their own names while also engaging in fraudulent activities. The Department noted that ring leaders who complete coursework in their own names "would be able to argue that they are 'students' and are thus entitled to inspect and review their education records.” Crucially, the Department indicated discretion for institutions to interpret FERPA's definition of "student" to mean "any individual who is or has been in attendance "in good faith." This "good faith" standard suggests that individuals whose primary purpose is fraud rather than education may not qualify for FERPA protections, even if they complete some academic work. The Department noted that, historically, the Department has left it to the discretion of the institution to determine when a student is “in attendance” as long as such determination can be “justified by some reasonable basis of fact and consistently applied.” The Department stated that, subject to certain conditions, “the University may adopt an attendance standard that requires an individual to attend the University ‘in good faith’ in order to be considered a student.”
The University may want to consider adopting such an attendance standard to establish a consistent policy and avoid any confusion in the future.