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Immediately after the President was elected, borrower advocates and lawmakers expressed concern about what would happen to the current regulations aimed at holding for-profit colleges accountable. On Tuesday, their concerns were validated. The Education Department announced that it would delay and renegotiate two of the previous administration’s signature regulations: the first aims to penalize programs whose graduates’ loan payments exceed a set percentage of their earnings, while the second simplifies the process for borrowers who say they have been defrauded by their colleges.

Stakeholders are still awaiting a response from the education cabinet secretary to a World Bank report released earlier this year which put Kenya’s Higher Education Loans Board on the spot for mismanaging its funds at the expense of needy students. The report, indicates that the Higher Education Loans Board is spending excessive money on administrative costs that could be added to students’ loans. It recommends an overhaul of the loan disbursement and recovery mechanisms.

Following the suspension of student loans and the imposition of a week-long ultimatum, 15 universities in Tanzania have responded to a ministerial directive to pay back loans issued to them for thousands of so-called ‘ghost’ students. The directive was issued after a recent verification exercise revealed that about 2,192 students receiving loans at 31 universities may not even exist. The universities were given seven days to recover and return the money, estimated to be over TZS3.8 billion (US$1.7 million).

Tanzania’s universities is having trouble with ghosts. The government has suspended student loans worth TZS3.2 billion (US$1.5 million), affecting around 2000 students. This came after a routine verification exercise revealed that some who signed up for loans may not even exist. In a country of more than 100 000 registered tertiary students, 2000 “ghosts” may not seem like a big problem. But when the loan money is being misspent, deliberately or because of poor administration, the entire higher education system is affected, and ultimately the country.

Tanzania has suspended student loans amounting to TZS3.2 billion (US$1.5 million) affecting over 2,000 students, some of whom are believed to be non-existent as they failed to show up during a verification exercise. Media reports said the two-month-long exercise carried out twice was to confirm that the students who were benefiting through the Tanzania’s Higher Education Students’ Loans Board, or HESLB, at various institutions of higher learning actually existed and were legitimate students.

The Obama administration is highlighting growing concern over soaring United States student debt by forming a new enforcement unit to crack down on illegal behaviour by higher education institutions. The Department of Education said that it would create the unit, having taken action recently against several colleges for profiting illegally from students with deceptive marketing and inappropriate federal loans.

A NSW government minister has launched a blistering attack on the federal government's administration of the scandal-ridden private vocational education sector. The sector has been plagued by allegations of dodgy private providers recruiting tens of thousands of students through free laptops and targeting illiterate, disabled students to sign them up to tens of thousands of dollars worth of taxpayer-funded student debt through the federal government's HECS-style VET-FEE help program.

Accreditors keep hundreds of schools with low graduation rates or high loan defaults alive. Most colleges can’t keep their doors open without an accreditor’s seal of approval, which is needed to get students access to federal loans and grants. But accreditors hardly ever kick out the worst-performing colleges and lack uniform standards for assessing graduation rates and loan defaults.

A forensic probe into corrupt practices at the government’s embattled multibillion-rand student funding vehicle is set to be launched, said Higher Education and Training Minister. The scheme gets a significant portion of the department’s budget. Students who did not meet the scheme’s funding thresholds were granted loans, putting countless deserving others at a disadvantage.

Zambia's government has decided to scrap its national bursary scheme and replace it with a transparent student loans scheme, following controversies including allegations of corruption that have dogged the bursary initiative for years.