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The Office of Federal Student Aid at the Department of Education identified millions of dollars in liabilities for RWM Fiber Optics, Inc. and Harrison College, two institutions that have since closed their doors.
RWM had 16 violations that were "egregious" efforts to obtain federal student aid funding illegally, including by falsifying information on the Free Application for Federal Student Aid to make it appear that students were eligible to receive financial aid they were not entitled to. The institution owes the department $2.4 million in liabilities, which cover all Title IV funding disbursed for award years 2015-16, 2016-17 and 2017-18.
Harrison College, which closed in 2018, is liable for $3.6 million in closed school loan discharges for Federal Direct Program loans, FSA found. It was already assessed $2.9 million in closed school discharges following a final audit.
"All institutions are expected to serve the best interests of their students, not serve themselves," said Richard Cordray, chief operating officer of FSA in a release. "Schools that engage in bad behavior or that suddenly close their doors, leaving students out in the cold, will be held accountable, and we expect other schools to pay attention to the actions we are taking today."
