ORANGE COUNTY, Fla. - 9 Investigates discovered the U.S. Department of Education was warned about an increase in student loan fraud two years ago but failed to put all of the recommended procedures in place to prevent it.
Frank Lilos relies on student loans to help pay tuition at UCF.
He was surprised to learn about a huge student loan scam that costs taxpayers more than $187 million.
"I think that's ridiculous to be getting that much money and not going to school," Lilos said.
The report by the Department of Education's watchdog says
"You would think they would have something to stop this," Lilos said.
The way it works
Then the students collect the cash, give the ringleader
A Tampa man was recently sentenced to nine years in prison for student loan fraud.
He helped people who didn't even graduate high school enroll in a Florida
9 Investigates uncovered the education department was warned in 2011, but in March
"I'm disturbed by that. I'm glad you brought it to my
"We're just basically talking about changing
9 Investigates pressed the Department of Education for answers for nearly a week.
They finally got back to us and said they have recently implemented several safeguards to prevent
The agency said it's now working aggressively to combat the problem.