February 7, 2003

U.S. Investigations Find Potential Fraud in Student Aid and Diploma Mills

By WILL POTTER

Two undercover investigations requested by U.S. Sen. Susan M. Collins have exposed the potential for fraud in higher education, but the Republican senator from Maine has stopped short of calling for legislation to crack down on the problems.

One study reveals flaws in the Education Department's system of verifying foreign colleges for federal student-loan programs. The other shows how easy it is to purchase fake degrees from diploma mills. The U.S. General Accounting Office, Congress's

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