Stopping the Cheats: How New Rules Saved Student Aid Money

The Education Department has recently announced a significant victory in the fight against student aid fraud. Since the start of the second term, new rules have saved $1 billion that was intended for students but was being stolen by criminals.

Secretary Linda McMahon's Statement

Linda McMahon, the Education Secretary, emphasized the government's commitment to stopping waste and fraud. She stated that the saved money will now benefit real students. In a festive note, she wished taxpayers a Merry Christmas for the positive development.

New Identity Verification Program

In June, the government launched a new program to verify the identities of first-time applicants. Now, applicants must present a valid ID to receive student aid, similar to other identity verification processes like traveling or renting a car.

Past Fraud and New Safeguards

The new rules were implemented after discovering past fraud, where $90 million was stolen. Some of the stolen funds went to fake companies using bots, while $30 million was taken by individuals using the identities of deceased people. Many of these scams were linked to international fraud rings.

The Education Department blamed the previous administration, stating that old rules were removed, making it easier for fraudsters to steal money. Within a week of the new rules, almost 150,000 fake applications were detected. Schools reported being targeted by sophisticated fraud rings and sought assistance.

Warning About Fake School Websites

The Department also issued a warning about fake school websites, urging students to exercise caution. They advised checking school names and website URLs to avoid falling victim to scams.