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Appendix I: Detailed Results of Undercover Tests

The following table provides details on each of the 15 for-profit colleges visited by undercover applicants. We visited each school twice, posing once as an applicant who was eligible to receive both grants and loans (Scenario 1), and once as an applicant with a salary and savings that would qualify the undercover applicant only for unsubsidized loans (Scenario 2).

Students receiving Pell Grantsa

Students receiving federal loansa

27%

39%

College information and degree sought

1

AZ - 4-year, owned by publicly traded company

Bachelor’s – Education

Encouragement of fraud, and engagement in deceptive, or otherwise questionable behavior

Scenario 1

x

Admissions representative compares the college to the University of Arizona and Arizona State University.

x

Admissions representative did not disclose the graduation rate after being directly asked. He provided information on how many students graduated. This information was available on the college’s Web site; however, it required significant effort to find the college’s graduation rate, and the college did not provide separate graduation rates for its multiple campuses nationwide.

x

Admissions representative says that he does not know the job placement rate because a lot of students moved out of the area.

x

Admissions representative encourages undercover applicant to continue on with a master’s degree after finishing with the bachelor’s, explaining that some countries pay teachers more than they do doctors and lawyers.

Scenario 2

x

Admissions representative said the bachelor’s degree would take a maximum of 4 years to complete, but she provided a 1-year cost estimate equal to 1/5 of the required credit hours.

x

According to the admissions representative the undercover applicant was qualified for $9,500 in student loans, and the representative said that the applicant should take out the full amount even though the applicant stated that he had $250,000 in savings. Admissions representative told the undercover applicant that the graduation rate is 20 percent. Education reports that it is 15 percent.

Graduation ratea

15%

Page 19

GAO-10-948T

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