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For-Profit Education Fraud
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Some for-profit education institutions have been accused of fraud for misleading students about accreditation, transferability of credits and costs associated with education. Lawsuits alleging consumer fraud a violations of state and federal law have been filed against some for-profit schools alleging students were tricked or misled into enrolling at the schools.
Some for-profit schools, including Everest College in a lawsuit filed in 2010, have been named in lawsuits alleging they systematically misled students into taking courses at their institutions. Among the allegations made are that students were lied to about the school's accreditation and about the transferability of credits from the schools. As a result, students enrolled in the schools believing their courses would be recognized or transferable to other post-secondary institutions, only to find out that was not the case.
Furthermore, some colleges are alleged to have lied about the cost of their programs, giving students an estimate for course costs, but then having students apply for loans for much more than the estimates given.
In 2011, the Department of Justice filed a lawsuit against the Education Management Corporation alleging, among other things, that recruiters made exaggerated claims about career placement to entice students to enroll, even if the students were not qualified.
In 2013, a jury awarded a plaintiff $13 million in her lawsuit against a for-profit school, after she alleged she was misled about the program she enrolled in, according to Consumerist (6/21/13). Among the allegations were that she was told she was in one program but was really in a program for a different job and would require more training. When she continued with her training she learned her certification was not required for the job she wanted.
In 2010, the Government Accountability Office (GAO) investigated for-profit colleges. While investigating 15 for-profit colleges, the GAO found that four colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements to undercover applicants. These included exaggerated potential salary for graduates, false or misleading information about a program's length or costs, pressuring students to sign an enrollment contract before allowing discussion with a financial advisor and repetitive recruitment phone calls.
Various for-profit schools have been accused of misleading students into taking programs they did not need for the jobs they wanted, lying about courses being transferable to other schools, lying about their accreditation, and/or misleading students about the costs associated with their programs. It is only after students are in or finished their programs that they unnecessarily spent money on programs they did not need or that would not get them the jobs or qualifications they wanted.
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For-Profit School Lawsuits
Furthermore, some colleges are alleged to have lied about the cost of their programs, giving students an estimate for course costs, but then having students apply for loans for much more than the estimates given.
In 2011, the Department of Justice filed a lawsuit against the Education Management Corporation alleging, among other things, that recruiters made exaggerated claims about career placement to entice students to enroll, even if the students were not qualified.
In 2013, a jury awarded a plaintiff $13 million in her lawsuit against a for-profit school, after she alleged she was misled about the program she enrolled in, according to Consumerist (6/21/13). Among the allegations were that she was told she was in one program but was really in a program for a different job and would require more training. When she continued with her training she learned her certification was not required for the job she wanted.
For-Profit School Fraud
For-Profit College Lawsuits
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EDUCATION FRAUD LEGAL ARTICLES AND INTERVIEWS
DeVry University Settles FTC Fraud Lawsuit for $100M
December 16, 2016
Santa Clara, CA: A $100 million settlement has been reached between DeVry University and the Federal Trade Commission (FTC) over allegations of for-profit education fraud, specifically, that the for-profit university used false statistics about its graduates’ job placement rates in order to lure students and increase enrollment. READ MORE
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READER COMMENTS
Gina B
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Stormy l. Felchle
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Tara pederson
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Janette C.P.
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Melinda Johninson
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Enisa
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LeDavid Sanders
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This is where other former students has found help and support.
jennifer rodriguez
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Ellen Schoenfeld
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Betty Gross
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Christina Marie Kidd
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Ebony Nelson
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Brittany Donaldson
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Lindsey C
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Natasa Korac
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Charlene Ruiz
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Joyce m Jordan
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Veronica gutierrez
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How can I do something
Marie Rodrigue
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Tanya Bresach
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Just recently, I found out that Zenith bought Everest out but they are just as bad as Everest. I had a career adviser that called me. His name is Pedro Fernandez. He promised that he would not leave me high and dry just like Everest. He gave me one mock interview and promised that there will be more. I did not hear from him for weeks. I told him the last time we spoke that I was fighting FAFSA so I do not have to pay my student loans back. I just emailed Pedro after not hearing from him for a long time asking for my transcripts because FAFSA needed proof of attendance. After about a day, he emailed me back and said that he has been reassigned to another part of the country and that he transferred my email to a representative in Oregon. I had to email him back to get the contact information of that representative because he did not give it to me. Apparently, his name is Douglas Lanier. I have been trying for over two weeks to get in touch with this guy and he still has yet to call me back or email me.
The reason I am emailing you is because I know you are good at what you do and getting the word out about Everest mistreating their students. If you know anyway you can help me or get me in touch with someone that can, please let me know. I am really upset because I was so proud of myself for finally accomplishing something and now I do not believe I accomplished anything. I just wanted my kids to be proud of me.
I greatly appreciate all of your help
I want to be part of this class action lawsuit
Yolanda mercado
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They are so misleading and need to be shut down I would like to be part of this action lawsuit against Everest College.
miss Jones
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These people should be SHUT DOWN permanently!
Minnesota
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