GAO finds fraud, deception in for-profit marketing practices
For-profit colleges are a popular choice among military students. The percentage of military undergraduates attending for-profit schools doubled from 2000 to 2008, rising from 6 percent to 12 percent — a rate three times that of traditional undergrads, according to the American Council on Education.
While many military students report excellent experiences with these institutions, a new report on their marketing practices from the Government Accountability Office should serve as a serious reminder to let the buyer beware. GAO investigators, applying undercover to 15 for-profit schools, found that all 15 made deceptive or questionable statements to applicants, giving misleading information about things like tuition costs, anticipated earning and accreditation. At four schools, applicants were encouraged to commit fraud on financial aid forms in order to qualify for federal aid.
In one case, an applicant was falsely told by a Florida for-profit — schools were not identified by name in the report — that the school was accredited by the same organization that accredits Harvard University and the University of Florida. In another, admissions reps at a certificate program in the Washington, D.C., area claimed that barbers can earn as much as $250,000 a year. According to Bureau of Labor Statistics reports, most barbers earn less than $43,000 annually.
The report also described a pattern of, for lack of a better word, stalking by recruiters at some for-profits. According to the GAO report, “One fictitious prospective student received more than 180 phone calls in a month. Calls were received at all hours of the day, as late as 11 p.m.”
When investigating schools, prospective students would do well to remember the old adage: If something sounds too good to be true, it probably is. Prospective students need to be prepared to be their own best advocates. Some key things to remember:
* Never sign anything you haven’t read — and read carefully – first. If you are feeling pressured to sign something, leave and take the document with you. Read it later, when you are not under such close scrutiny.
* Never lie on any formal document involving financial aid, college application or otherwise.
* Always verify for yourself that a school is properly accredited and accredited as it claims to be by going to the Council for Higher Education Accreditation’s database of properly accredited institutions and programs.
* Talk to a military education services officer or other trusted mentor if you feel you are being misled by a school.
* Finally, pay attention to word of mouth. The military is a tight-knit community. Listen long enough, and you’ll start to know which schools have a good reputation for dealing fairly with military students, as well as which schools it is best to avoid.




September 15th, 2010 at 10:13 am
Hello, Thanks for article. Really appreciate you directing them to military Education Services offices. Sometimes mentors don’t know the whole story about these situations. In the Ed Offices we have trained professionals.