Student loan fraud has become a major federal enforcement target. With trillions in outstanding student debt, the Department of Education Inspector General and DOJ are aggressively prosecuting fraud schemes. Whether your accused of lying on FAFSA applications, running a for-profit school scam, or participating in identity theft student loan schemes, you face up to 20+ years in federal prison.
Types of Student Loan Fraud
Application fraud - False income, dependency, or enrollment information on FAFSA
School fraud - For-profit schools enrolling ineligible students, falsifying attendance
Identity theft schemes - Using stolen identities to obtain student loans
Disbursement fraud - Obtaining loan disbursements without attending school
Forgery schemes - Forging documents to obtain loans
Servicer fraud - Fraud by loan servicers in handling loans
Federal Charges
Student loan fraud (20 USC 1097) - Up to 5 years
Wire fraud (18 USC 1343) - Up to 20 years
Mail fraud (18 USC 1341) - Up to 20 years
Theft of government funds (18 USC 641) - Up to 10 years
Aggravated identity theft (18 USC 1028A) - Mandatory 2 years consecutive
If this is your situation
Stop reading. Start defending.
Defense Strategies
No False Statement
FAFSA forms are confusing. What looks like fraud may be misunderstanding of complex eligibility rules.
Legitimate Enrollment Intent
If you intended to attend school and use loans properly, temporary financial difficulties or circumstances that prevented attendance dont necessarily constitute fraud.
Institutional Misconduct
Sometimes schools-not students-are the primary fraudsters. Students may be victims of predatory institutions.
Act Now
Student loan fraud investigations often involve data analysis across millions of applications. If your being contacted by investigators, get defense counsel immediately.