ERIC Number: ED283431
Record Type: RIE
Publication Date: 1987
Reference Count: 0
Special Fraud Alert for Schools, Lenders, and Guarantee Agencies.
Department of Education, Washington, DC.
Guidelines to prevent fraud and abuse in the government's student aid programs are presented for schools, lenders, and guarantee agencies. Student aid fraud is defined as intentional wrongful obtaining of student financial assistance (SFA) benefits through deceptive means. It is noted that falsification of eligibility is the most common form of SFA fraud. Seven ways that a student can qualify as eligible for the U.S. Department of Education's SFA program funds are identified. Methods that have been used to obtain funds falsely include false claims of independent student status; false claims of citizenship; use of false identities (i.e., false names and/or Social Security numbers); and forgery of official signatures or certifications. A checklist to help spot potential fraud in the SFA application process includes indicators, examples, and the potential significance of the indicators. An example of a case where a school official helped uncover an elaborate scheme to bilk the government out of more than $40,000 in student aid funds is cited. Four additional steps that can help minimize fraud and abuse of student aid funds are are also suggested. (SW)
Publication Type: Guides - Non-Classroom
Education Level: N/A
Authoring Institution: Department of Education, Washington, DC.