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

Scenario 1

x

Admissions representative said the program takes 18 to 24 months to complete, but provided a cost estimate that suggests the program takes more than 2.5 years to complete.

x

Admissions representative did not disclose the graduation rate after being directly asked. The college’s Web site also did not provide the graduation rate.

Scenario 2

x

Undercover applicant would be required to make a monthly payment to the college towards student loans while enrolled.

x

Admissions representative guaranteed the undercover applicant that getting a degree would increase his salary.

Scenario 1

x

The undercover applicant was not allowed to speak to a financial aid representative until he enrolled in the college.

x

Admissions representative misrepresented the length of time it would take to complete the degree. He said the degree would take 2 years to complete but provided a cost worksheet that spanned 3 years.

Scenario 2

x

The undercover applicant was told he was not allowed to speak to a financial aid representative until he enrolled in the college. After refusing to sign an enrollment agreement the applicant was allowed to speak to someone in financial aid.

x

Admissions representative told undercover applicant that monthly loan repayment would be lower than it actually would.

Source: GAO undercover visits and Department of Education.

aThis information was obtained from the Department of Education National Center for Education Statistics.

College information and degree sought

Students receiving Pell Grantsa

Students receiving federal loansa

Graduation ratea

14

89%

92%

34%

TX - 2-year, owned by publicly traded company

Associate’s Degree – Business Administration

15

TX - 2-year, privately owned

Associate’s Degree – Respiratory Therapy

100%

100%

70%

(192353)

Page 26

GAO-10-948T

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