Feds And Colleges Now Blacklisting Student-Aid Scammers

Paying for College
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<p>"More than 12 million U.S. college students applied for federal aid for the school year starting this fall, but around 126,000 of these applicants have been flagged by schools and the government as potential scammers looking to cash aid checks without ever intending to get an education.</p>

<p>According to the Wall Street Journal, the Dept. of Education started tracking questionable applicants at the beginning of 2013, flagging those 'students' who have received aid for three or more schools within the past year." ...</p>

<p>Feds</a> And Colleges Now Blacklisting Student-Aid Scammers ? Consumerist</p>

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<p>I wonder if that is why community colleges in my city no longer participate in the direct loan program. It seems like more than one school should be an alert.
I expect the people that do this don’t realize how they are really hurting themselves most of all in the long run.</p>

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<p>^ They don’t look at the long run, only the $ now. I’m glad the fed is cracking down to save the people who don’t abuse the system.</p>

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<p>What took them so long?</p>

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<p>Im surprised that they are even paying attention.</p>

<p>On a slightly smaller scale- our school district neither collects the appropriate fees for facility & field rental or tries to collect the payments for groups that they do eventually bill.
Plus some outside groups are made to look like they are part of the district & not liable for charges.</p>

<p>So many places where they are hemmoraging money but their retort is often to layoff teachers.</p>

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<p>I am surprised they were able to get away with it for so long. As for the schools, if they are as meticulous and as slow as mine is to get the financial aid packages together I am amazed the scammers got any aid at all without showing up for class, earning grades etc. It’s sad that some people take advantage when there are so many that need the aid desperately and good for them for cracking down.</p>

7

<p>Wow, I didn’t know that some loans go directly to the students.</p>

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<p>This is news? People do this all the time at community colleges in California.</p>

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<p>This is a new change for the 2013/2014 Award Year and all students that utilize Financial Aid moving forward will be subject to this. The main point is to stop the “PELL Chasers”. The Department of Education is looking at students that have received Pell Grant funds at three institutions over the last three award years (2010–2011, 2011–2012 and 2012–2013). Essentially…chasing PELL around and not actually completing classes.</p>

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<p>What about the For-Profit colleges. Many on-line colleges scam from the federal government student aid program every year. Feds did an undercover investigation on 15 collges. All of them were taped and recorded scamming students. Colleges are enrolling anyone however focusing on the unemployed, single parent, minorities, and uneducated. I was enrolled and I did not even own a computer. If a student is on -line for the first 14 days, the school keeps their student aid money. One particular college recieved 26 billion dollars in April of 2010 for enrolling 86,000 student. June of the same year, only 150 students were still participating in class. However, the students who were unable to continue because the college staff no longer was available after the 14 days. Search 8/4/2012 GOA For-Profit schools. Please do this.</p>