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Scenario 1

x

Admissions representative said the bachelor’s degree would take 3.5-4 years to complete, but only provided an annual cost estimate for 1/5 of the program.

Scenario 2

x

When the undercover applicant asked about the qualification of the professors, the only information provided about the qualifications of the professors is that they have professional experience.

x

Admissions representative did not provide the graduation rate when directly asked. Instead she said “not everyone graduates”.

Scenario 1

x

Admissions representative told the undercover applicant that she should take out the maximum amount of federal loans she could, even if she did not need all the money. She told the applicant she should put the extra money in a high-interest savings account. While subsidized loans do not accrue interest while a student is in college, unsubsidized loans do accrue interest. The representative did not disclose this distinction to the applicant when explaining that she should put the money in a savings account.

Scenario 2

x

Admissions representative tells the undercover applicant that the college is regionally accredited but does not state the name of the accrediting agency. The college’s Web site did provide specific information about the college’s accreditation, however.

x

Admissions representative said financial aid may be able to use what they call “professional judgment” to determine that the undercover applicant does not need to report over $250,000 in savings on the FAFSA.

x

Admissions representative did not disclose the graduation rate after being directly asked. He instead explained that all students that do the work graduate. 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.

College information and degree sought

Students receiving Pell Grantsa

Students receiving federal loansa

Graduation ratea

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

9

83%

80%

70%

Scenario 2

Not reported

Not

reported

47%

58%

IL - 2-year, privately owned

Certificate – Medical Assistant

10

IL - 4-year, privately owned

Bachelor’s Degree - Psychology

11

PA - 4-year, owned by publicly traded company

Bachelor’s Degree – Business Administration

Not reported

9%

x

Admissions representative initially provided misleading information to the undercover applicant about the transferability of the credit. First she told the applicant that the credits will transfer. Later, she correctly told the applicantthat it depends on the college and what classes have been taken.

Page 24

GAO-10-948T

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