For-Profit Colleges: Undercover Testing

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Title: For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices [GAO-10-948T]
Date: August 4, 2010
Author: U.S. Government Accountability Office

[Includes video, Highlights Page (PDF), Full Report (PDF, 30 pages), Accessible Text, video transcript]

Undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and that all 15 made deceptive or otherwise questionable statements to GAO's undercover applicants. Four undercover applicants were encouraged by college personnel to falsify their financial aid forms to qualify for federal aid--for example, one admissions representative told an applicant to fraudulently remove $250,000 in savings. Other college representatives exaggerated undercover applicants' potential salary after graduation and failed to provide clear information about the college's program duration, costs, or graduation rate despite federal regulations requiring them to do so.

Source: http://www.gao.gov/products/GAO-10-948T