March 29, 2017

Fraud At For-Profit Colleges

The Office of Government Accountability conducted an undercover investigation of financial aid at 15 for-profit colleges.  Each college was tested twice – one with a student who was eligible for financial aid, whereas the other student was ineligible.  The findings include:

  • 4 of the 15 colleges encouraged fraudulent practices, but all 15 made deceptive statements.
  • An admissions counselor in Texas advised a student to remove $250,000 from his savings.
  • One student received over 180 phone calls in a month from recruiters, as late as 11 pm.
  • An admissions counselor in Washington D.C. told a student interested in a certificate program for barbers that he could make up to $250,000 a year, but the Labor Department reports that 90% of barbers make less than $43,000.
  • Lastly, a student was told that a massage therapy certificate was a good value, but the cost was $14,000 at the for-profit institution, while the same certificate from a local community college was only $520.

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