Student loan fraud will cut off funds for thousands of young people

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A private, for-profit college chain with a dozen campuses across Florida and Texas will lose access to federal student aid. The move comes after an investigation by the U.S. Department of Education’s office of Federal Student Aid (FSA) found the chain, Florida Career College, violated federal rules and failed to meet basic standards required to access federal loans and grants.

“Federal Student Aid is holding Florida Career College (FCC) accountable for taking advantage of some of the most vulnerable students,” FSA Chief Operating Officer Richard Cordray said in a statement.

Unless a court intervenes, the move leaves FCC, which enrolled roughly 5,000 students late last year, facing an uncertain financial future. The overwhelming majority of its students depend on federal aid to attend. According to the College Scorecard, 97% of students at FCC’s Tampa campus, for example, received federal loans; 97% also received a federal Pell grant for being low-income.

FCC pushed back against the department’s conclusions in a statement to NPR.

“We are deeply disappointed in the Department of Education’s myopic and misguided decision,” wrote Joe Cockrell, FCC spokesperson. “The DOE risks harming thousands of students seeking economic stability and a better life. For more than 40 years, our singular focus has been quality career training programs that meet or exceed all state and Federal regulations so that people can find a good job in their “chosen career path. We intend to fight this unfair and inequitable decision vigorously on behalf of our students and the communities we serve.”