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Posts Tagged ‘fraud’

Recently, we came across the issue of faux colleges and their activities with federal funds. These so-called schools are hitting the economically challenged communities in America in several different ways.
http://www.sbwire.com/press-releases/education-management-corporation-nasdaqedmc-accused-by-employees-of-concealing-evidence-in-billion-dollar-fraud-case-231823.htm
First, many of these proprietary schools sign up students for degrees and programs that wouldn’t be useful in the job market. They actually target people who aren’t savvy enough to realize that the money they will be receiving is a student loan rather than a grant. These students trust these shady schools because their involvement with the federal student loan system gives them the creditability of the U.S. government.

 
In 1991 while working as a congressional staffer, I spent an hour in the congressman’s office with a local school officials explaining why said school was on new list of high default institutions and was being kicked out of the federal student finance system. Come on now; your “graduates” default rate is over 80%. Clearly, your clients weren’t students searching for financial aid but were financial aid searching for students.
Secondly, employees of these schools who have functioning moral compasses don’t have the hearts to continue selling false hope and future personal money pitfalls. Remember, student loan debt is one of the only debts that cannot be discharged in bankruptcy. Employees who don’t meet recruitment quotas or those who question the fudging of numbers to governmental oversight entities will feel the wrath of management.

 
But, where are the Black and Hispanic members of congress during this fleecing of minority America. Oh, those brothers and sisters are at their own fund-raisers with their hands out to the parent companies of these schools. Taxpayers fund K-12, state colleges and state technical schools. So, why pay much more to attend for-profit schools. This article about Everest College explains the whole mess.
http://www.jsonline.com/watchdog/noquarter/jobplacement-performance-of-everest-college-proves-dismal-gp6s4go-169976496.html
Okay, I will admit that I am one of the people who likes the Everest parodies on you tube but this is serious. We need a grassroot movement to educate the public and members of congress about this schools and their treatment of students and employees.

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