Loophole Permits Loans at Non-U.S. Accredited Schools

A recent Bloomberg article sheds light on a loophole that some overseas colleges are using. Unfortunately, it has a big impact on U.S. taxpayers.

Some students who are rejected by U.S. medical schools opt instead to attend a university overseas. One medical school of choice for  some of these students is DeVry, which has two for-profit medical schools located in the Caribbean. Although these schools are not accredited by the governing organization that approves U.S. medical programs, students who attend these schools are eligible to receive loans that have been issued by the U.S. Department of Education.

According to the Bloomberg report, the big problem with this arrangement is that U.S. taxpayers — not the schools — are responsible if a student is unable to repay his or her loan.