Student Loan Fraud: $2.7B in Confirmed Cases

The Department of Education Office of Inspector General has confirmed $2.7 billion in student loan fraud, with 2,614 institutions flagged. For-profit colleges account for 72% of fraud cases despite enrolling only 5% of all students.

PSLF fraud complaints increased 400% since the program expanded in 2020. ED OIG opened 341 investigations in FY2023. Only $1.2 billion of confirmed fraud has been recovered.

Analysis based on Department of Education OIG semiannual reports, FTC Consumer Sentinel data, and CFPB complaint database.