➤Fraud Report – Profit Colleges and Universities Federal Financial Aid Fraud
An undercover congressional investigation into recruiting tactics at for-profit colleges and universities found fraudulent and deceptive marketing practices at 15 institutions in 6 states, including Texas, and in the District of Columbia.
Carried out by the Government Accountability Office, or GAO, the investigation didn’t name individual schools, but highlighted a Texas school for encouraging undercover applicants to lie about their assets and dependents to qualify for federal financial aid.
Other examples include an employee at a Florida school who falsely claimed it was accredited by the same agency as Harvard and the University of Florida, and a small beauty college whose staff told an applicant that barbers can earn $150,000 to $250,000 a year.
The undercover applicants also comparison shopped and found that many of the programs being touted by for-profits as a good deal were offered by a nearby public college at a fraction of the price.
The for-profit universe ranges from large companies whose shares are traded on Wall Street to mom-and-pop career schools. They offer everything from certificates in medical billing and cosmetology to a bachelor’s degrees in business administration. The University of Phoenix, for example, has the largest student body in North America.
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Tags: Colleges and Universities, Financial Aid Fraud, Fraud Report







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