Although negotiated rule-making on teacher preparation programs isn't yet complete, the Education Department plans to announce another round soon on distance education fraud. Department officials said at negotiations Thursday that plans for more rule-making are underway, and higher education lobbyists said it will focus on financial aid fraud rings. The rings use "straw students" who enroll with no intention of attending classes, usually in online courses at open-access institutions. They then apply for federal aid and split the proceeds. The fraud rings have become a growing problem as online education has boomed, but some worry that a crackdown could endanger legitimate students' access to federal aid.
- Distance education advocates worry about proposed changes to Pell Grant
- Hitting Hard on Fraud
- List of gainful employment negotiators emerges
- U.S. announces rulemaking on gainful employment, state authorization and 'long-term agenda'
- Federal rule-making panel OKs plan to expand income-based repayment program
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