Report: For-Profit Caribbean Med Schools Use ‘Loophole’ to Tap Federal Funds

December 4, 2013

Some for-profit medical schools in the Caribbean that are ineligible for federal student aid programs have been encouraging their students to access those funds by simultaneously enrolling in U.S.-based online programs, Bloomberg reported.

The medical students take out federal loans by virtue of their enrollment in the U.S. online programs and then use the money to support themselves in the Caribbean, the article says. The institutions defended the practice to Bloomberg, saying that the online programs are valuable to students and give them a better shot at landing a residency in the U.S. But critics of the arrangement argued it’s a loophole that Congress should close.  A previous Bloomberg investigation of for-profit medical schools in the Caribbean that revealed the relatively higher loan debt that their students carry prompted scrutiny from U.S. Senator Dick Durbin of Illinois, a Democrat. 

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