Obama plans to fight universities extorting money from students

“The Barack Obama administration is deeply concerned about the surge in student debt in the United States. The solution to this problem must be new structures that will fight illegal activities of educational institutions, ”write Barney Jopson and Sam Fleming for the Financial Times.

The Department of Education has announced that a unit will be created to combat colleges fraudulently receiving student money.Higher education institutions do this through dishonest marketing and government loans.

Student debt has become one of the main topics in the US presidential election. Democrats Hillary Clinton and Bernie Sanders, as well as Republican spokesman Marco Rubio, are proposing plans to reduce student debt.Student debt rose from $13 billion to $1.2 trillion in the third quarter, according to the New York Federal Reserve Fund. This amount is more than the debt on car loans and credit cards.The percentage of student debt is 11.6 percent above these categories and is at least 90 days overdue.