Financial Aid/Legal Q?

Trying to keep this short: The woman (Mrs. J) that owns and operates my gfs cosmetology school is being investigated for fraud regarding financial aid. Because of this a student loan she had applied for was placed on hold. After talking to the investigators, she was told that it is now able to be reopened and that she can get her money, Mrs. J just needs to call and have it reopened. Mrs. J will not do it, she said a few times that she had talked to the investigators but this has proven to be a lie. We really need that money and we were really counting on it when it was placed on hold 2 months ago. Now we're getting desperate. I'd really like to sue/kill Mrs. J.

My question for the OG. Is this legal? Can she just refuse my gfs request for financial aid despite her being eligible and approved by the aid people themselves?