Five Charged With $690,000 in Student Loan Fraud

non-American students loans

HI.plz i want to ask if there are any loans or credits accorded to non-American students. If there are any i would be very pleased if the related information could be sent to my email : karim_zizou5@hotmail.com.

How about looking at WHY they're borrowing?

We ought to be also focusing on the COST of college credit itself. In the internet age, there is very little good reason for students to be borrowing even half of what they are. We ought to have college credit (especially undergraduate) offered online for nearly free with rigorous exams. The monopolies of the text publishers, the accreditation bodies and the colleges themselves are the main reasons we're not moving that direction.

For a relative pittance, one can get crime and street violence training with GRAND THEFT AUTO. But a simple college course costs a fortune. WHY exactly is that?

This story has absolutely nothing to do with your checking account problems. There is nothing at all similar. Keep to the topic: student loans.

Yes, private or alternative loans can be dangerous. When a student leaves school with debts of $90,000 and higher, it is sad. They will be paying off loans for 30 years - like a mortgage but with nothing tangible to show for it. But -- it's not always the fault of the lender. Is the fault of a lender when someone takes out a 30 yr mortgage? No. The borrower was informed what his/her payments and debt would be. Yet many people claim student loans are unfair??

Student loan fraud

This incident highlights the need for regulatory oversight of the student loan industry. Certain unscrupulous companies are marketing their products be telling students to "bypass the financial aid office". This is very worst advice that anyone can give to a student. The financial aid office is the only safeguard in place to assure that students are not provided loans that are in excess of the cost of attendance. These companies only interest is in their profitability. Students beware! The U.S. Department of education needs to reign in these "alternative lenders" before they do more harm.

Normal Vigilance is Easy

Any abnormality that can be eye-balled can be red flagged with computer programming, whereby automated for review (e.g., mismatched SSN's & names; multiple checks to one address). Our bank failed to note that our checking account was being drained at oversees ATMs until we notified them. I had been physically in the bank on day 4 of 8 days of about 4 dozen successful withdraws, and many more failed attempts. I guess I beam back and forth between Italy and Massachusetts. We noted the illegal transactions on a Sunday, but could only notify the police -- the bank had to terminate the illegal access during normal business hours. Extending this to student loans: There is nothing costly to automated detection of abnormal activity, and it is not debilitating to the procurment of loans to fund education.