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When colleges defraud students, should the government go after school executives?
March 1, 20227:04 AM ET
Cory Turner – Square
Cory Turner
Finding errors in student-loan payback plans.
Hanna Barczyk for NPR
In a shocking investigation, the U.S. Senate declared the federal student loan program “plagued by fraud and abuse.” Its report heaped scorn on for-profit trade schools for serving 22% of federal student loan borrowers but accounting for 44% of defaults.
“The school keeps the student aid money … and the student is left holding the bag with a poor credit rating, no job and no income to repay the student loan,” U.S. Rep. Marge Roukema, R-N.J., declaimed in her crusade against for-profit “bad apples.”