 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1092d. Scholarship fraud assessment and awareness 
        activities
        

(a) Annual report on scholarship fraud

                           (1) Requirement

        The Attorney General and the Secretary of Education, in 
    conjunction with the Federal Trade Commission, shall jointly submit 
    to Congress each year a report on fraud in the offering of financial 
    assistance for purposes of financing an education at an institution 
    of higher education. Each report shall contain an assessment of the 
    nature and quantity of incidents of such fraud during the one-year 
    period ending on the date of such report.

                         (2) Initial report

        The first report under paragraph (1) shall be submitted not 
    later than 18 months after November 1, 2000.

(b) National awareness activities

    The Secretary of Education shall, in conjunction with the Federal 
Trade Commission, maintain a scholarship fraud awareness site on the 
Internet web site of the Department of Education. The scholarship fraud 
awareness site may include the following:
        (1) Appropriate materials from the Project Scholarscam awareness 
    campaign of the Commission, including examples of common fraudulent 
    schemes.
        (2) A list of companies and individuals who have been convicted 
    of scholarship fraud in Federal or State court.
        (3) An Internet-based message board to provide a forum for 
    public complaints and experiences with scholarship fraud.
        (4) An electronic comment form for individuals who have 
    experienced scholarship fraud or have questions about scholarship 
    fraud, with appropriate mechanisms for the transfer of comments 
    received through such forms to the Department and the Commission.
        (5) Internet links to other sources of information on 
    scholarship fraud, including Internet web sites of appropriate 
    nongovernmental organizations, colleges and universities, and 
    government agencies.
        (6) An Internet link to the Better Business Bureau in order to 
    assist individuals in assessing the business practices of other 
    persons and entities.
        (7) Information on means of communicating with the Federal 
    Student Aid Information Center, including telephone and Internet 
    contact information.

(Pub. L. 106-420, Sec. 5, Nov. 1, 2000, 114 Stat. 1868.)

                          Codification

    Section was enacted as part of the College Scholarship Fraud 
Prevention Act of 2000, and not as part of title IV of the Higher 
Education Act of 1965 which comprises this subchapter.


                                Findings

    Pub. L. 106-420, Sec. 2, Nov. 1, 2000, 114 Stat. 1867, provided 
that: ``Congress makes the following findings:
        ``(1) A substantial amount of fraud occurs in the offering of 
    college education financial assistance services to consumers.
        ``(2) Such fraud includes the following:
            ``(A) Misrepresentations regarding the provision of sources 
        from which consumers may obtain financial assistance (including 
        scholarships, grants, loans, tuition, awards, and other 
        assistance) for purposes of financing a college education.
            ``(B) Misrepresentations regarding the provision of 
        portfolios of such assistance tailored to the needs of specific 
        consumers.
            ``(C) Misrepresentations regarding the pre-selection of 
        students as eligible to receive such assistance.
            ``(D) Misrepresentations that such assistance will be 
        provided to consumers who purchase specified services from 
        specified entities.
            ``(E) Misrepresentations regarding the business 
        relationships between particular entities and entities that 
        award or may award such assistance.
            ``(F) Misrepresentations regarding refunds of processing 
        fees if consumers are not provided specified amounts of such 
        assistance, and other misrepresentations regarding refunds.
        ``(3) In 1996, the Federal Trade Commission launched `Project 
    Scholarscam', a joint law enforcement and consumer education 
    campaign directed at fraudulent purveyors of so-called `scholarship 
    services'.
        ``(4) Despite the efforts of the Federal Trade Commission, 
    colleges and universities, and nongovernmental organizations, the 
    continued lack of awareness about scholarship fraud permits a 
    significant amount of fraudulent activity to occur.''
