Probe finds fraud in U.S. distance education
(Reuters) - The U.S. Department of Education's Office of Inspector General (OIG) identified a "serious vulnerability" in distance education programs due to frauds committed by students and recommended a stricter enrollment process for colleges.
Stocks of for-profit colleges, which mostly offer online programs, fell on fears of further decline in enrollment and profit.
In the letter dated September 26, the OIG said it identified increasing number of cases involving large and loosely affiliated groups of individuals who conspired to defraud Title IV programs -- a type of federal loan -- as