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Three Georgia women and an Alabama man pleaded guilty to conspiring to defraud the US Department of Education’s Federal financial aid programs worth millions of dollars. According to the Justice Department, they admitted enrolling people who were not eligible to attend college and completing financial aid applications using fake students’ names; they also did fake students’ homework and exams and manipulated grade requirements to continue qualifying for Federal financial aid.

The South African Organisation Undoing Tax Abuse (OUTA) has uncovered “multimillion-rand tender corruption” at the National Student Financial Aid Scheme and has handed over all information to the Special Investigating Unit. OUTA said its revelations follow an investigation into corruption and irregular contracts at the Services Sector Education and Training Authority after a successful Promotion of Access to Information application relating to a ZAR170 million (US$9.6 million) tender for a biometric attendance monitoring system.

Two employees at the Higher Education Students’ Loans and Grants Board (HESLGB) have been arrested in Lilongwe for allegedly stealing through a private university, MWK335 million (US$326,000) meant for student loans between 2018 and 2019. Failing to pay rent and provide loans to students at the tertiary institutions, the university made a proposal to the board for a donation of MWK10 million (US$9,750). The board instead sent MWK300 million and asked the university to return the additional money to various accounts belonging to employees at the loans board.

The US Attorney’s Office arrested a nurse practitioner on federal charges of wire fraud, financial aid fraud and aggravated identity theft. She used doctors’ pedigree information and forged signatures to certify disability diagnoses that got more than $10.5 million in loans discharged for at least 125 people. She defrauded the federal Department of Education's Total and Permanent Disability discharge program, which relieves the student loans of those who suffer from permanent physical or mental disabilities.

The director of the Training Domain, an educational institution in Fort Meyers designed to improve students ‘employability skills, has been charged with 10 counts of wire fraud and one count of Federal Student Assistance (FSA) fraud. From July 2017 to April 2019, she assisted students in applying for financial aid but instead of using the loan and grant proceeds to hold classes and for other educational expenses, the director kept the FSA fund and split them with students. She also created false and fraudulent high school diplomas.

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.

Today’s higher education legal landscape in the USA is characterised by a wave of issues, including inflated employment rates for recent graduates, inflated starting salaries, as is the case with law schools and business schools, and the employment formula linked to federal grants and loans recipients, as is the case with for-profits. This wave will bring more lawsuits.

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.