Scammers making off $1 Billion In Financial Aid Money - 13abc.com Toledo (OH) News, Weather and Sports

Scammers making off $1 Billion In Financial Aid Money

Posted: Updated:
 Scammers are making off with money intended to help students attend college. 

They're stealing identities from those who qualify for aid or borrowing them to apply for financial aid. According to U.S. Postal Inspector William Zemblidge, "By doing that, you're receiving financial aid or grants that are given to you and ultimately the monies would come into a location or an address that was controlled by the suspects or the people involved in the ring."

It's a growing problem across the nation. Last year 12 million students applied for financial aid and more than 126,000 of those applications were flagged as potential scammers.

 Sometimes students apply for money without ever intending to go to school. Between 2007 and 2010, the amount of Pell Grant money going to fraud skyrocketed from 400 million to 1 billions.

Pell Grants are an easy target because they don't need to be repaid like a student loan and they require no credit check. Once the money is distributed, a student and do whatever he or she pleased, including leave school.

The Scholarship Fraud Prevention Act has created a fraud awareness partnership between the U.S. Department of Education and the Federal Trade Commission.

  • LocalMore>>

  • Stretch of Angola Road closed for bridge work

    Stretch of Angola Road closed for bridge work

    Monday, September 1 2014 4:56 PM EDT2014-09-01 20:56:19 GMT
    A stretch of Angola Road that goes under I-475 will be closed beginning Tuesday for bridge work.The bridge is being widened and It's going to be shut down through December.There will be detour using McCord Road, Airport Highway and Holland-Sylvania.
    A stretch of Angola Road that goes under I-475 will be closed beginning Tuesday for bridge work.The bridge is being widened and It's going to be shut down through December.There will be detour using McCord Road, Airport Highway and Holland-Sylvania.
  • Early Head Start aims to offer services for whole family

    Early Head Start aims to offer services for whole family

    Monday, September 1 2014 4:47 PM EDT2014-09-01 20:47:25 GMT
    Students in Toledo's Head Start program are headed back to school soon. For the first time the program is being run by Toledo Public Schools.
    Students in Toledo's Head Start program are headed back to school soon. For the first time the program is being run by Toledo Public Schools.
  • Farmers make proactive steps to reduce runoff

    Farmers make proactive steps to reduce runoff

    Monday, September 1 2014 4:36 PM EDT2014-09-01 20:36:19 GMT
    Many farmers have their soil professionally tested every year and they only add the recommended nutrients on their crops. They are doing what they can to keep chemicals out of the runoff.
    Many farmers have their soil professionally tested every year and they only add the recommended nutrients on their crops. They are doing what they can to keep chemicals out of the runoff.
  • Top StoriesMore>>

  • Man found dead in barn fire, woman escapes

    Man found dead in barn fire, woman escapes

    Monday, September 1 2014 4:22 PM EDT2014-09-01 20:22:09 GMT
    One man is dead after an overnight barn fire in northern Monroe County.The sheriff's office says that barn went up in flames just before 1 a.m. Monday.It happened outside of Carelton, MI, near the intersection of Colf and Sumpter.Investigators say a 54-year-old lived in an apartment above the barn. His body was found inside.According to deputies, the man's girlfriend managed to get out alive, with burns on her hands and feet.The sheriff is waiting to release the man's identity until his famil...
    One man is dead after an overnight barn fire in northern Monroe County.The sheriff's office says that barn went up in flames just before 1 a.m. Monday.It happened outside of Carelton, MI, near the intersection of Colf and Sumpter.Investigators say a 54-year-old lived in an apartment above the barn. His body was found inside.According to deputies, the man's girlfriend managed to get out alive, with burns on her hands and feet.The sheriff is waiting to release the man's identity until his famil...
  • Labor Day parade has deep meaning for workers

    Labor Day parade has deep meaning for workers

    Monday, September 1 2014 4:14 PM EDT2014-09-01 20:14:52 GMT
    Local unions and spectators were in Downtown Toledo for the annual Labor Day Parade on Monday and participants say the event is about more to them that just another parade.
    Local unions and spectators were in Downtown Toledo for the annual Labor Day Parade on Monday and participants say the event is about more to them that just another parade.
  • Water Advisory: Toxins near South Bass Beach

    Water Advisory: Toxins near South Bass Beach

    Monday, September 1 2014 9:25 AM EDT2014-09-01 13:25:51 GMT
    For the first time this year, an algal bloom advisory is in effect for South Bass Island. Testing at the State Park Beach shows high levels of toxins in the water. It was 13 parts per billion of microcystin. That's prompting Ohio's Environmental Protection Agency to post a public health advisory.The "orange flag" cautions older people, those very young or anyone with a compromised immune system to stay out of the water near South Bass Beach. 20 parts per billion of microcystin would have laun...
    For the first time this year, an algal bloom advisory is in effect for South Bass Island. Testing at the State Park Beach shows high levels of toxins in the water. It was 13 parts per billion of microcystin. That's prompting Ohio's Environmental Protection Agency to post a public health advisory.The "orange flag" cautions older people, those very young or anyone with a compromised immune system to stay out of the water near South Bass Beach. 20 parts per billion of microcystin would have laun...

Area Events Calendar

See It, Shoot It, Send It!