Laws dealing with education

Are there laws dealing with educational loans? My little sister dropped out of one college to go to another. She transfered all of her info to her new school. They told her she would need additional money besides her grants to pay for some of the...

classes, so they said they would help her with a loan. When they put her name through the system it came up that she already had one opened from the other school (which she closed before they could open it) and she wouldn't be able to open another until it was paid.
Who can she go to about the loan the first school opened without her permission? They looked in the records and it was opened AFTER she had already transfered! I can't find anything anywhere about situations like this, and she really needs someone to report this into.
Does anyone on here know anything about this type of problem?

Def. see a lawyer... Any kind of lawyer can point you in the right direction on to what you need to do or who you need to see!

first, what company was the loan taken out in name of ?
second see where the loan was from, what bank ?

third contact both of those and tell them you did not take out that loan, and you did not spend that money. they will guide you from there.

but before any of that, contact the financial depertment at the school where the loan was taken out.

She already talked to the first school (that the loans was taken out from) and they're saying they have no idea what she is talking about! It's funny because they couldn't answer some of her questions!
It's a good idea to call the bank where the loan was taken from. I'm having her do that now. And our mother is already on the case to find a lawyer. We're just worried that the first school is a bit corrupt (being the reason she transfered) and are trying to give her a run-around.
Thanks for the advice!

there's no way to give her a run-around.. she has the statements.. and all the proof. so she'll be fine.