01/03/2011 02:37 pm ET Updated May 25, 2011

Cory Bailey, Iowa Man, Gets 3 Years In Student Loan Scheme

CEDAR RAPIDS, Iowa (AP) -- A 22-year-old Cedar Rapids man has gotten three years in prison for recruiting fake students to sign up for classes at Kirkwood Community College in a student loan scheme.

Cory Bailey had pleaded guilty to mail fraud. A news release from the office of U.S. Attorney Stephanie Rose, Northern District of Iowa, says Bailey was sentenced on Monday. Bailey was ordered to pay restitution of nearly $5,900 to the college and more than $133,000 to the U.S. Education Department.

Bailey must serve three years of supervised release after he leaves federal prison.

According to court records, Bailey recruited potential fake students to sign up for classes in 2007, so he and two others involved in the scheme could access their information to apply for financial aid.