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For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices: Congressional Testimony
Gregory D. Kutz
Enrollment in for-profit colleges has grown from about 365,000 students to almost 1.8 million in the last several years. These colleges offer degrees and certifications in programs ranging from business administration to cosmetology. In 2009, students at for-profit colleges received more than $4 billion in Pell Grants and more than $20 billion in federal loans provided by the U.S. Dept. of Education. The auditor was asked to: (1) conduct undercover testing to determine if for-profit colleges’ representatives engaged in fraudulent, deceptive, or otherwise questionable marketing practices; and 2) compare the tuition's of the for-profit colleges tested with those of other colleges in the same geographic region. Charts and tables.
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