[BlackSunrise]

My family is currently dealing with this crap as well. Not from any of the schools mentioned, we are dealing with The Art Institute of Colorado. I pieced out some of my GI Bill to my son for his Associates degree. So he was getting everything paid for (stipend and all for being a fulltime student) through the VA. However, on enrollment students are required to fill out paperwork for the Free Application for Federal Student Aid (FAFSA) forms whether they need it or not. So after he completed his Associates program which was fully covered by my GI Bill portion, the school submitted him for a FAFSA loan and we started getting bills for a school loan. WTF?

The funding fraud ended up closing almost all of the Art Institute schools, only a few remain open.

The Department of Education did forgive a large portion of his FAFSA loan (which was never used because of my GI Bill). Yet he still has an open case to have the rest of the $$ wiped.

The Department of Justice charged the former owner of The Art Institutes, Education Management Corp, with $11 billion in federal funding fraud. Education Management Corp agreed to settle for $95 million to prevent further action against alleged consumer fraud and illegal recruiting tactics.

This is all complete garbage. We already have a huge student loan problem in this country. Its a broken and abused system in my opinion. But to take advantage of service members and their families really pisses me off. That and the fact that we are still waiting for the Department of Education to expunge the rest of the money he owes, when he didn't even take out a loan (and never used a portion of the FAFSA loan-the school took it all). Yet our government bailed out all the automotive debit to help boost our economy because of auto manufactures poor business practices. Pure horse crap! Thanks, it all makes sense if you don't think about it.