The Trump administration’s new higher education rule ties federal student loan eligibility to graduates’ earnings, pressuring college programs whose students fail to meet federal earnings benchmarks.
The Treasury Department has identified approximately $270 million in suspicious financial activity potentially linked to fraud targeting federal student aid programs, the agency told FOX Business exclusively.
Treasury’s Financial Crimes Enforcement Network (FinCEN) has referred the findings to federal investigators for further review. The referrals are part of the Trump administration’s broader effort to combat fraud and protect taxpayer dollars.
“Federal student aid is intended to expand educational opportunities, not line the pockets of fraudsters who steal from students pursuing their education and hardworking taxpayers,” Treasury Secretary Scott Bessent wrote in a statement before…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.