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Fed Shocked To Find Student Loans Used For Anything But To Learn
Zerohedge ^ | 06/24/2013 | Tyler Durden

Posted on 06/24/2013 3:16:25 PM PDT by Rusty0604

Since January, the agency said it has flagged 126,000 applicants, about 1% of all those seeking aid for the 2013-2014 school year. "What we find are very poor students academically that are borrowing to the max, getting the maximum in their Pell grant and just going from school to school," said Rich Heath, director of financial aid at Anne Arundel Community College Roughly $829 million in Pell grants in the fiscal year that ended last September were "improper payments," which includes fraud and disbursements...

(Excerpt) Read more at zerohedge.com ...


TOPICS: Education
KEYWORDS: corruption; education; fraud; studentloans

1 posted on 06/24/2013 3:16:25 PM PDT by Rusty0604
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To: Rusty0604

I'm shocked. SHOCKED, I say!!!

2 posted on 06/24/2013 3:19:43 PM PDT by llevrok (We are in a new Cold War. At home.)
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To: Rusty0604

I was talking to a young man whose brother had just gotten about 10k. He said his brother’s friends had run out band bought cars and “party” supplies with the money. His brother had rented a very nice off-campus condo. (I lived at home, drove a 20 year old beater I spent every weekend working on and worked half time too. I graduated with no debt but there’s no way you could do that at today’s inflated prices.)


3 posted on 06/24/2013 3:23:38 PM PDT by Gen.Blather
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To: llevrok

Lookin’ for a paaaaaarty crowd.......


4 posted on 06/24/2013 3:24:57 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: Rusty0604

When I went to school I never personally saw a dime of the student loan money I borrowed. It was deposited directly into the College bursar’s account in the exact same amount as my tuition and associated fees. I wouldn’t have had the opportunity to use it for other purposes.


5 posted on 06/24/2013 3:27:42 PM PDT by circlecity
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To: nascarnation

Lot of them is party bros lookin for white chicks, and they give could a about going to classes.


6 posted on 06/24/2013 3:30:07 PM PDT by oldtimer
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To: Rusty0604

Whats that you say?

You HAND out money with little or no checks and balances and are surprised there is fraud????

My flabbers are completely ghasted.

Who woulda ever thunk?


7 posted on 06/24/2013 3:31:54 PM PDT by Adder (No, Mr. Franklin, we could NOT keep it.)
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To: oldtimer

Since the gov’t took over the student loan business, we will be stuck with all these loans that aren’t paid back.


8 posted on 06/24/2013 3:41:02 PM PDT by Rusty0604
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To: Rusty0604

I used my student loans for booze and hookers.


9 posted on 06/24/2013 3:41:21 PM PDT by SIDENET
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To: Rusty0604
we will be stuck with all these loans that aren’t paid back.

I've predicted that when Junior is upset that Grandma got a premature flush from the Death Panels, the fedgov will offer up a nice loan forgiveness program....

10 posted on 06/24/2013 3:42:55 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: Rusty0604

OMG. We see this all around. The drug dealers/users just get their loan with help from local trade schools or joke community colleges, and then never go to class. Live off the money. Totally abused. No oversight.


11 posted on 06/24/2013 3:43:03 PM PDT by shalom aleichem
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To: Rusty0604

I live in a college bedroom town and a lot of that student loan money ends up on my sidewalk on weekends. I want my cleaning fluid bill subsidized.


12 posted on 06/24/2013 3:43:42 PM PDT by Stentor
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To: circlecity

Me too. It was taken to pay tuition and room and board as were any BEOG (now called Pell) grants.

I also had a part time job on work study and they got any of the money if I still owed above. The rest was kept for future fee offsets.

If I wanted cash I had to get a real job also which I did while still taking 15 hours or more a semester. Amazing what you can do with time when you aren’t wasting it going to parties and pledging a ridiculous fraternity.


13 posted on 06/24/2013 3:45:14 PM PDT by Fledermaus (The Republican Party is dead. Let's not pretend otherwise.)
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To: SIDENET

I saw this card one time; it was an old cowboy and he was saying, “Most of the money I had in my life I spent on beer and women, and the rest I just wasted.”


14 posted on 06/24/2013 3:47:12 PM PDT by Rusty0604
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To: llevrok

One of my best friends in college used her to pay for her wedding. She was only married 2-3 years before the divorce.


15 posted on 06/24/2013 3:49:04 PM PDT by CityCenter (Pleading the 5th is just so 1972.)
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To: nascarnation

The government is now essentially in charge of the student loan market, and that’s not working out so well, The Wall Street Journal says in a Friday editorial.
Thanks to a provision passed along with health-care reform in 2010, the Department of Education became the originator of roughly 90 percent of U.S. student loans.
The results aren’t pretty, the paper points out. A whopping 35 percent of student-loan borrowers under 30 were at least 90 days late on their payments at the end of last year, up from 26 percent in 2008 and 21 percent in 2004.

Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Newsfront/student-loan-debt-government/2013/03/01/id/492677#ixzz2XB27iN6m


16 posted on 06/24/2013 3:52:08 PM PDT by Rusty0604
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To: Gen.Blather

No, you can’t pay the student loans at the insane interest it is right now. Grad of 06’ with a grant. I took on a loan in my frosh’ year and could barely pay it off and never did it afterwards. The rest of the semesters I did every “odd” job (don’t judge me on this) from strip club dj to driver to escort service driver for cash.


17 posted on 06/24/2013 3:52:38 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Rusty0604

I knew a college student sometime in the 1980’s who took out student loans at a low interest rate and put the money in CDs earning more. The profit helped pay for her trips home to Egypt every summer.


18 posted on 06/24/2013 3:55:20 PM PDT by posterchild
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To: Rusty0604

The “Big Education” cycle is a mechanism where govt loans huge sums of money to students at subsidized rates.

who pay huge sums to attend universities

which pay ridiculous salaries to liberal profs/admins

who donate bigtime to Democrats

That’s why the “Big Education” cycle is not going away anytime soon.


19 posted on 06/24/2013 3:55:41 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: posterchild

An arbitrageur....

I wonder if she’s wearing a burqua now that the Arab Spring is in full bloom....


20 posted on 06/24/2013 3:57:40 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: max americana

“The rest of the semesters I did every “odd” job (don’t judge me on this) from strip club dj to driver to escort service driver for cash.”

COOL! I desperately aspired to be a porn star. But, I couldn’t make the minimum length requirement. Talk about discrimination! I think there should be an EEOC requirement that producers hire a quota of us shorter guys. “Okay, time for the short guy scene.” “I’m here and I’m ready!” “You’re ready? Seriously? Oh, I hate the EEOC!”


21 posted on 06/24/2013 3:58:41 PM PDT by Gen.Blather
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To: Gen.Blather

Cut!


22 posted on 06/24/2013 4:09:06 PM PDT by Rusty0604
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To: Gen.Blather

They were great cash paying jobs. Great stories to tell down the road. That’s why I thought the next generation of Americans are weak, depending on a loan it will take them 15 years to pay off. A lot of my classmates had the same boring waiter jobs...

The funniest time was when I dropped off the chick at a dude’s house. So it’s my role to wait in the car and I looked at my notes for my Accounting test the next morning and seriously, she came back in 7 minutes, I said “so the client wasn’t home?’. She said ‘no, sweetie, he was a quick shot”


23 posted on 06/24/2013 4:10:06 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: SIDENET

“I used my student loans for booze and hookers.”

The rest you just wasted.


24 posted on 06/24/2013 4:10:26 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: max americana

“They were great cash paying jobs. Great stories to tell down the road.”

Loved the story, btw. But, regarding the above, I have noticed that kids seem to have no inherent sense of value. They have little to no role in the family other than as consumers. They don’t have family jobs and they don’t have responsibilities. They are becoming less men and more children despite being in their 20’s. During the Civil War kids younger than 10 put meat on the tables. I’m certain the had an entirely different view of life than kids today.

I love hiring farm kids. They really want to work and know how. They seem more mature than others their same age.


25 posted on 06/24/2013 4:15:02 PM PDT by Gen.Blather
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To: llevrok

Shall we round up the usual suspects :)?


26 posted on 06/24/2013 4:19:38 PM PDT by deputytess (Men of the West .....stand and FIGHT!)
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To: Gen.Blather

Some of my fratmates were Southern farm boys, too. These guys are not afraid to take any job and simply, just do it vs the other city kids who were spoiled brats and damn lazy, based on my experience. And a good number of these big city guys were liberals which made it worse.

I’ve said to my GF in restrospect, that I “earned” my Business Management diploma by working for this madam, not through the university classes. Real world experience counts.


27 posted on 06/24/2013 4:24:13 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: max americana

“I’ve said to my GF in restrospect, that I “earned” my Business Management diploma by working for this madam, not through the university classes. Real world experience counts.”

When I was in college there were these two prostitutes taking psychology classes “working on their PhD.” They’d turn tricks in a VW Microbus between classes. I thought, wow, what a scam. They didn’t have to deal with drunks. They only dealt with clean college boys. They were in a university parking lot. They were protected by the university cops. And, if they got caught, they were just college kids having sex in a van.

The woman who came up with the idea of video internet sex was a prostitute on her way home from her umpteenth arrest. She thought there had to be a better way. She stopped at a radio shack and the clerk sold her a bunch of internet cameras and what she needed. She set up her own site and she was a millionaire in a short time. She invited her prostitute friends over and they did everything online to order and never had to deal with anybody touching them, beating them, or pimps or drugs...America, is this a great country, or what?


28 posted on 06/24/2013 4:32:34 PM PDT by Gen.Blather
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To: Gen.Blather

Expect nothing less from governments that think they know how to spend your money better than you do. If we cut government in 1/2 at least we would eliminate 1/2 the fraud and waste with no reduction in services at all.


29 posted on 06/24/2013 4:42:42 PM PDT by spawn44 (moo)
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To: Rusty0604

I bought my first CD player with a student loan. Nice Carousel 5 CD unit. Of course, I had to buy some CDs to go with it.


30 posted on 06/24/2013 4:49:05 PM PDT by Skooz (Gabba Gabba we accept you we accept you one of us Gabba Gabba we accept you we accept you one of us)
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To: Lurker
It's true.

lol

31 posted on 06/24/2013 4:50:14 PM PDT by SIDENET
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To: Gen.Blather

“America, is this a great country, or what?”

Yes, it still is and that’s why I moved here from Kanada. A little side note: while I was part-timing also as a strip club DJ during my senior year, we had a 19-year old bus boy. I conversed with him a few times and he told me his Mom was sick and needed money for an operation so that’s why he’s working there due to cash tips. (I remember the club owner telling me he’s a family friend and he’ll pay him below the table)

When I left one night, he was headed to the bus stop and I told him “help me out with my turntable and mixer gear back to my car, then I’ll give you a lift home. It’s 2 AM and it’s not a good neighborhood after midnight”. So I just gave him a ride for 6 months before he bought a good enough car. (Of course, it took away my time from driving home one of the dancers but it’s alright ;)

Fast forward 5 years later, I;m at E3 in L.A. with our effects company and this stranger keeps staring at me, whom I first thought was fag. Then he says “excuse me, are you *** from the club on Washington?” I said, ‘how do you know that and who are you?”. I;m Rick, the bus boy.

The dude graduated from university with a degree in computer science and he was selling 5 apps for the Iphone. He’s now in Silicon Valley as a software developer and entrepeneur and when I head to the Gay/bay area, we always meet up.


32 posted on 06/24/2013 4:57:03 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Gen.Blather
So what you're saying is that the NSA is building a huge porn archive in Utah?

-PJ

33 posted on 06/24/2013 4:58:21 PM PDT by Political Junkie Too (If you are the Posterity of We the People, then you are a Natural Born Citizen.)
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To: Rusty0604
The government is now essentially in charge of the student loan market, and that’s not working out so well, The Wall Street Journal says in a Friday editorial.

They are trying to take over or control everything, and everything they touch turns to hsit.

What do we hand our kids or grandkids?

34 posted on 06/24/2013 5:06:06 PM PDT by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: taildragger

A chart in the article show that in 2010 and 2011 (after Obama takeover) improper pell pmts shot up to 1 billion. But Obama told us that those greedy private banks shouldn’t be making the profit on the loans and this was going to work out for the people.
Part of the plan to bring down the system?


35 posted on 06/24/2013 5:24:59 PM PDT by Rusty0604
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To: circlecity
When I went to school I never personally saw a dime of the student loan money I borrowed. It was deposited directly into the College bursar’s account in the exact same amount as my tuition and associated fees.

That was the situation with me in my collegiate days (1962-66). My other expenses (clothing, entertainment, car, etc.) were paid for by my part-time work, which ranged from 25 to 30 hours a week.

I was totally exhausted upon graduation.

36 posted on 06/24/2013 6:14:51 PM PDT by OldPossum
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To: Rusty0604

They are used on a regular day to pay fines and costs at courts. All the time. And the defendants make it no secret.


37 posted on 06/24/2013 7:01:42 PM PDT by healy61
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To: Rusty0604

Could’ve told them that, back in 1985!!!!


38 posted on 06/24/2013 7:07:20 PM PDT by Terry L Smith
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To: max americana

Could be worse. I know a student who took a job answering the phone for an erotic telephone service. She would get the credit card information and find out the ‘preferences’ of the caller and then patch them to some housewife in the suburbs who specialized in that particular fantasy. She didn’t do the calls herself. One exception, one guy who called up repeatedly and wanted to be verbally disciplined. He drove her crazy so she started charing him!!


39 posted on 06/24/2013 7:15:17 PM PDT by ladyjane (For the first time in my life I am not proud of my country.)
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To: ladyjane

I knew a woman that worked for one of those erotic phone services, and believe me, she didn’t look ANYTHING like the girls in their ad.


40 posted on 06/24/2013 7:38:36 PM PDT by Rusty0604
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To: Rusty0604

The gal I knew who answered the phone for that kind of company was a knock out. Drop dead gorgeous. Nice voice too.


41 posted on 06/24/2013 7:55:13 PM PDT by ladyjane (For the first time in my life I am not proud of my country.)
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