For-Profit Colleges Accused of Fraud

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California’s Attorney General Xavier Becerra says that Ashford employees misrepresented how easy it is to get financial aid. When students did not qualify for aid, they were left paying the bill on their own. In other cases, they told students that they could use financial aid for living expenses while attending school. This is untrue. Government student aid is only for classes, text books and school housing.

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Becerra says that the school relied on attracting students who qualified for aid because from 2009 to 2016, up to 87 percent of the school’s income came from government student loans.

The Department of Veteran Affairs is also considering cutting Ashford from GI Bill funding. The GI Bill pays for veterans to continue their education. The GI Bill provided $30 million to the school last year alone.

The University of Phoenix

Over 1,000 students complained about the University of Phoenix’s practices.

The Federal Trade Commission has been investigating the university since 2015. The GI Bill has paid Phoenix a total of $830 million over the last 10 years. Students claim that part of the school’s success comes from unauthorized events on military bases.