Stopping the Cheats: How New Rules Saved Student Aid Money

The Education Department recently shared some big news. They stopped a huge amount of fraud in student aid. Since the start of the second term, new rules have saved $1 billion. This money was meant for students but was being stolen by criminals. The Education Secretary, Linda McMahon, talked about this. She said the government is serious about stopping waste and fraud. She also mentioned that this saved money will now help real students. She even wished taxpayers a Merry Christmas for the good news. In June, the government started a new program. It checks the identity of first-time applicants. They must show a valid ID to get student aid. This is similar to showing an ID for other things, like traveling or renting a car. The new rules came after finding out about past fraud. $90 million was stolen. Some of it went to fake companies using bots. Another $30 million went to people using the identities of deceased individuals. Many of these scams were linked to international fraud rings. The Education Department blamed the previous administration. They said old rules were removed. This made it easier for fraudsters to steal money. Within a week of the new rules, almost 150, 000 fake applications were found. Schools asked for help because they were being targeted by sophisticated fraud rings. The Department also warned about fake school websites. They urged students to be careful. Check school names and website URLs to avoid scams.