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ED OIG: Federal Student Aid’s Oversight of Foreign Medical School Pass Rates

January 1, 2012

Pursuit's Take

From fiscal year (FY) 2008 through FY 2010, FSA provided $1.15 billion in Federally- guaranteed student loans to U.S. citizens enrolled in 18 freestanding foreign medical schools. Students enrolled in medical programs at an additional 45 component foreign schools—schools that offered programs of study in addition to medical programs—also received student loan funds; however, because FSA does not track loan volume according to academic discipline, the loan amounts specific to students enrolled in the medical programs at these schools are unknown.

OIG’s audit found that improvements are needed in FSA’s oversight of foreign medical school pass rates. FSA does not have assurance that Federal student loan funds were disbursed only to students who attended schools that were eligible to participate in the Federal student loan programs. Over the past year, FSA continued to provide such funds for disbursement to students at six ineligible schools; some or all of these students are likely to be ineligible.Furthermore, by providing continued funding to students attending ineligible schools, FSA failed to ensure that funds are directed only to students attending high quality programs that will sufficiently prepare them to pass the USMLE and practice medicine in the United States.

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