UPDATE: U.S. Senate Committee scheduling second hearing on for-profit schools 9/30/10 at 10am EST
9/23/10 Bloomberg: Veterans Failing Shows Hazards of For-Profit Schools in GI Bill
August 4, 2010
A Senate committee convened today to discuss investigations the U.S. Government Accountability Office conducted on 15 for-profit colleges (read the full report here). As we reported last month in our consumer alert about fraudulent trade schools, a growing number of schools have been engaging in deceptive marketing and fraudulent financial aid practices. The U.S. GAO report undergirds our own findings that the schools exploit prospective students' economic hardship and federal funding, while lying to students about their accreditation and job placement opportunities to boost their bottom lines.
According to Senator Michael Enzi (R-WY), "It is crystal clear that some programs at for-profit schools are misleading students and possibly defrauding taxpayers out of millions of dollars in student aid funds."
As federal funding for financial aid is expected to total $145 billion this year alone, the government is beginning to recognize the need for regulation.
Director of policy and research for the National Association of College Admissions Counseling, David Hawkins, testified at today's hearing. "In an unregulated environment," he stated, "the potential for misrepresentation and outright fraud is a clear and present threat, which can result in harm to students and, in the case of federal aid and loans, to the taxpayer."
If you have witnessed fraudulent activity in the academic recruiting or financial aid process, or if you believe you have been a victim of fraud by a for-profit school, we would like to hear from you. Your communication with our firm will be completely confidential and at no cost to you. Email us, fill out the contact form on this page or give us a call at (888) 285-3333.
To learn more about how to avoid deceptive recruiting tactics, visit our blog and follow our Fight Trade School Scams Facebook Page.
For additional media coverage on this topic, see:
Consumerist.com: For-Profit Colleges Caught on Video Encouraging Financial Aid Fraud
Consumer Affairs: For-Profit Schools get More Scrutiny
NPR: For-Profit Colleges Encouraged Fraud, Used Deceptive Marketing, GAO Reports
Bloomberg: Harkin Seeks Data on For-Profit Schools After Hearing