Newly Published Data Highlights Fraud Complaints Against For-Profits

"For-profit colleges drew attention again [last] week after troves of newly public data showed the overwhelming impact the institutions have had on student borrowers," Diverse: Issues in Higher Education reports.

"The Century Foundation, a nonpartisan think tank, published data acquired through a Freedom of Information Act (FOIA) request, consisting of nearly 100,000 applications for loan relief filed by students who say they have been defrauded by their colleges or universities.

The data collected includes all complaints filed as of August 15, 2017. According to the accompanying report, nearly 99 percent of these complaints were submitted against for-profit schools.

'I think the data really speaks for itself,' said Yan Cao, a fellow at the foundation and co-author of the report. 'The complaints are highlighting specific institutions that we know to be bad actors.'

Of the 98,868 borrower defense claims acquired by The Century Foundation, about three-fourths, or 75,343 claims, were filed against the now closed Corinthian Colleges. A total of 97,506 were filed against for-profit universities. Considering that for-profits make up only 10 percent of enrollment and 18 percent of student loan volume, these numbers signal an urgent need for reform, according to Cao.

For-profit colleges have been in the spotlight over the years after Corinthian Colleges, a California company, was investigated for fraud by both state and federal governments between 2007 and 2015 for targeting low-income individuals and single parents by using false advertisements. In 2015, Corinthian Colleges and 24 of its colleges filed for bankruptcy."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 11/13/2017


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