The Reasoned Review

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Fraud at the University of Phoenix

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ProPublica with a fantastic investigation:

Phoenix allegedly had broken the law by tying recruiters’ pay to enrollment numbers [2], U.S. Department of Education investigators found, creating pressure to sign up unqualified students.

In the years since, Phoenix cemented its stature as the nation’s largest for-profit school and the single biggest recipient of federal student aid. But some of the school’s recruiters have continued to use high-pressure, deceptive tactics, according to a dozen current and former students and two former recruiters who spoke to ProPublica and Marketplace [3] as part of a joint investigation.

The students said Phoenix counselors misled them about whether credits would transfer to other schools, pretended to befriend them and lied about financial aid. The recruiters said they were told to rope students in with phony claims that classes were filling fast, or by suggesting that federal grants would cover costs, even if that was uncertain.

It’s the old trifecta of deception: under-estimate the cost of tuition, over-estimate the size of available grants, and promise the credits will be transferable (even when they’re not). These poor kids are getting taken for a ride!


Written by pavanvan

March 24, 2010 at 1:29 pm

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