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A federal grand jury in Kansas indicted a former college-basketball coach last month on charges that he arranged for his players to receive phony academic credit and stole $120,000 in Pell Grants. The former coach faces a total of 51 years in prison and over $1.5-million in fines if found guilty of all counts.

An auditor has been charged for having changed business records in an effort to help conceal the theft of more than $11 million. The district superintendent is accused of stealing more than $2 million; the assistant superintendent for $4 million and a former school accounting clerk for $780,000. Money shall have been used on artwork, jewellery, foreign trips and home mortgages. The scandal that has resulted in a state-wide changes in the way school finances are audited.

Honduras invests large sums in education, but powerful teachers' unions and political appointments hinder reforms in a sector vulnerable to corruption and lacking of civil society monitoring. There are 50,000 teachers in the country; between 2,500 and 6,000 of them have pending issues about their posts (such as irregular paid leaves or unjustified absence while still on the payroll). For current decentralization plans to impact positively on education services, local auditing skills need to be improved, parents must be given a bigger role, and unions must adhere to codes of conduct.

The Education department must explain why it let a student loan company that an audit had found improper millions of dollars. The loan company received the payments through a subsidy program that guaranteed a 9.5 percent interest rate on student loans. In an accord reached in January, the department allowed it to keep the $278 million it had received but suspended future payments of more than $800 million until a future audit could determine whether the company was eligible for the money.

According to Stossel there is a financial corruption going on in American schools. He claims that there is a myth that the education system needs more money. US spend more on schooling than the vast majority of countries that obtain better results in the international tests. But the bureaucrats still blame school failure on lack of funds, and demand more money.

A report from Fundación Grupo Civico Etica y Transparencia (EyT) was elaborated to show the results of the "Corruption Prevention in the Education System project". After monitoring large construction contract processes related to the maintenance of schools in rural areas, EyT found that a significant part of the Ministry of Education's public contracting budget had irregularities. It advised the Ministry to strengthen the quality control of materials and conduct regular internal audits.

The government of Lower California wrongfully assigned 91.5 million pesos from federal funds to cover the wages of people working for the national union of education workers (SNTE) , instead of channelling it into activities of direct benefit to schools and teachers, as laid down by the contribution fund for basic education and teacher training (FAEB).

A seven-month investigation revealed that a number of Chile's universities are illegally operating as profit-oriented businesses. According to a report conducted by a special investigation committee, eight universities violated anti-profiteering laws amidst findings of increased salaries among executives, circulation of finances between companies under the same private ownership and outsourcing of services as means of generating revenue.

A new government report on recruiting techniques in the for-profit higher education industry finds instances of college officials urging applicants to invent children and to hide their savings as a way to leverage more federal aid.

Colleges, universities and other academic organizations received just shy of $2 billion in grants directed to them by individual members of Congress in the 2010 fiscal year, an Inside Higher Ed analysis shows. Earmarks are commonly derided as "pork barrel spending" because they are seen as attempts by legislators to keep their constituents happy (and voting for them).