PRESIDENT TRUMP: Students not paying tuition not only a federal oversight issue

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(WHNT) – The Latest: President Trump announced Wednesday that there were two more arrests in this week’s raids at the offices of the massive private for-profit college, EduStar Education. He also talked about how the case has exposed a lot of problems.

EduStar says this week’s arrests are not related to their business; that any planning for these types of raids had been underway for months.

That is, they say, only to the extent that we have been planning and preparing for things like this for a long time. And as for how they are doing things differently than previous defendants of this type in the past, they have a straightforward explanation:

“Just simply put, it’s a bank account. As the President said, you can make the whole country fail, but you can’t make any bank account fail,” said EduStar Director of Communications Dena Osgood.

We see these raids very frequently in schools… not a lot of students at these universities… but a lot of cash. They are used to finance giant contracts at these universities… contracts the schools can’t perform.

So-called these cases at Corinthian Colleges, the easy access of cash at the end of their training contracts is what we typically see… fraud.

At the same time, no students tuition was taken.

That’s important to know… because the President’s comments, that we are seeing a lot of money in student tuition costs is not true. A lot of students are not paying that tuition at this colleges, that’s not a major issue in this business.

A lot of it is overhead… not meeting requirements with some of these demanding contracts, filing false claims with the federal government.

Now, we do want to emphasize… they weren’t there to determine if students were spending their money properly or were in worse shape academically than they thought. That is the responsibility of a student and the State of Alabama. We have not seen that from the college that we have vetted. So, that is all federal oversight.

EduStar says they do not believe the two students directly connected to the recent arrests will have their contracts terminated.

After all, in the federal case, there are no accusations of fraud or wrongdoing at this point… at this time.

So, we want to put this out there: they are good to go. They are hanging in there and we expect that is going to be the status throughout the next few months.

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