A new report from the Inspector General for the Department of Education shows that large and well-organized ring of fraudsters are creating fake student profiles and applying for student loans, working primarily through online education providers.
The problem is made worse by many online education outlets not properly reporting attendance and enrollment to the Department of Education.
Sometimes the fraudster commit student loan fraud through creating “straw students”, completely fictitious profiles of non-existent persons. Other times, they take out student loans in names of real people who later find out that they were targeted when their finances take a hit due to unpaid student loans that they never applied for or received.
If you have student loans, be sure to check periodically to see if there is unusual activity on your student loan records to protect yourself from student loan fraud.