Two For-Profits Accused of Scamming Students, Won't Get Funding


February 2, 2016
by Susan Dutca-Lovell
Two for-profit trade schools are being accused of lying to students in order to secure millions in federal funding. After receiving a combined $107 million in federal funding in the 2014-2015 academic year, two for-profit trade schools are temporarily banned from receiving any more funding from the Department of Education after reportedly falsifying documents and student statistics in what is being called an outright lie to both students and the federal government.

Two for-profit trade schools are being accused of lying to students in order to secure millions in federal funding. After receiving a combined $107 million in federal funding in the 2014-2015 academic year, two for-profit trade schools are temporarily banned from receiving any more funding from the Department of Education after reportedly falsifying documents and student statistics in what is being called an "outright lie to both students and the federal government."

Marinello Schools of Beauty has 56 campuses in California and Nevada, 23 of which will no longer receive federal aid after reportedly requesting aid for students who had "invalid high school diplomas" and making students pay higher monthly out-of-pocket costs to cover tuition - such as $2,500 to $2,750 for books and supplies- even when they qualified for more aid, according to Jillian Berman. Marinello is a for-profit institution that received more than $87 million in Pell grants and federal loans in the 2014-2015 academic year. The chain was already on a "heightened cash monitoring” list, which is usually due to issues involving debt, accreditation or turning in financial information late. Marinello spokesman Joe Hixson plans to appeal the decision since the Department only now "disclosed to us its unfounded allegations." He maintains the intuition's innocence and warns that "[Marinello] will defend itself vigorously, without the federal funds our students deserve, our operations are at risk." This cut would affect 4,3000 students and potentially remove 800 employees from their jobs, according to Hixson.

On the other hand, Under Secretary Ted Mitchell claims that such "questionable business practices" simply "violate [the school's] trust through deceptive marketing practices and defraud taxpayers by giving out student aid inappropriately." Similarly, Computer Systems Institute (CSI) has been accused of "submitting false job placement rates" to students by the Department of Education and the Accrediting Council for Independent College and Schools. CSI had stated 42 of its students who graduated were working for a company called Home Health Consultants - the Department's investigative follow-up found no students worked for HHC or in a related healthcare field. CSI received roughly $20 million in federal funding in the 2014-2015 academic year. For-profit schools have been criticized for enrolling students through "troubling tactics" in order to profit from federal funds, leaving students ill-prepared for the jobs they were promised. While for-profit schools are known for admitting nontraditional students, many students end up borrowing large sums of money that cannot be repaid - but the school gets paid regardless.

Corinthian Colleges, known to be one of the largest for-profit schools in the US, went bankrupt after allegations of falsifying "job placement and graduation rates to lure students," according to Berman. Although the schools have two weeks to dispute the claims, Berman notes the Department of Education must “determine what qualifies as a successful borrower defense claim."

Credit attributed to Jillian Berman who covers student debt and financial issues faced by today's youth, with pieces featured in MarketWatch, The Huffington Post, Bloomberg, and Xconomy.

Getting more college financial aid doesn’t have to be a relentless search. Scholarships.com is totally free. Connect with our massive database of millions of college scholarships at any time by searching for awards in a variety of ways. Scholarships.com offers the quickest and easiest way to search for, apply to, and win college scholarships. Start making your college education affordable or perhaps even free, by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 

Political Scince,hostory,eng,mil  on  2/4/2016 6:34:56 AM commented:

I Am Middle Class Boy

Ethan S.  on  2/3/2016 3:19:23 PM commented:

There are many scholarships to apply for, don't get caught up in debt and sketchy like businesses. Always do your research and make sure you are 100% sure before you invest.

Michelle H.  on  2/3/2016 9:02:55 AM commented:

I just completed my eight month curriculum at CSI downtown Chicago campus. I graduated and was certified in my disciplines during the process. However, what I learned through job search efforts the widely held certifications that employers are paying top dollar for are not offered at CSI. This is disappointing. $15,000 is not pocket change for me and the best I have been able to do is secure a part-time job at minimum wage (10.00) and learn quick about the real world of billing and coding so that I can move on to better opportunity. Also, during my initial interview I kept repeating how I was unemployed going through major life changes and I did not know how I would pay back the loan from the school. In return I have not gotten my diploma for completing the coursework.

eve b  on  2/2/2016 8:54:53 PM commented:

contact department of education to get this school loan erase that whst i did . goodluck??

james buchanan  on  2/2/2016 5:57:35 PM commented:

This is an effective tool to have scholarships for colleges

Jessica v  on  2/2/2016 4:13:29 PM commented:

I am currently a student at one of these marinello schools and this is the most scariest frustrating things to go through any advice as to where to go from here is greatly appreciated

Female-only college and university STEM programs are coming under fire for male discrimination as they attempt to redress gender imbalance in fields such as computer science and engineering. The U.S. Department of Education launched more than two dozen investigations into higher education institutions nationwide - including UC Berkeley, UCLA and USC as well as Yale, Princeton and Rice - which offer female-only scholarships, awards and professional development workshops.  

<p/.Under Title IX, sex discrimination in education programs that receive federal funding is prohibited at both the private and public level. A new study that recently came out revealed that 84% of roughly 220 universities lopsidedly benefited women by offering single-gender scholarships, many of which are in STEM fields; permitted under Title IX only if the overall effect of scholarships is equitable.

Female-Only Scholarships Under Fire In Higher Ed

August 20, 2019 4:57 PM
by Susan Dutca-Lovell
Female-only college and university STEM programs are coming under fire for male discrimination as they attempt to "redress gender imbalance" in fields such as computer science and engineering. The
Dozens of suburban Chicago families have been using a legal loophole to help their children get need-based college financial aid and scholarships. By their parents' forfeiting legal guardianship, students are able to declare financial independence so they qualify for federal, state and university financial aid.

Parents Giving Up Guardianship for College Cash?

July 30, 2019 9:24 AM
by Susan Dutca-Lovell
Dozens of suburban Chicago families have been using a legal loophole to help their children get need-based college financial aid and scholarships. By their parents' forfeiting legal guardianship,
An Iowa Carpenter sent 33 Iowan students he'd never met to college with the $3 million he had in savings. Prior to his death in 2005, Dale Schroeder told his attorney that he wanted to use the money in his will help send underprivileged students to college. Schroeder's scholarship recipients, also known as Dale's Kids, recently met up to reflect on his generosity and the fact that many of them would have been unable to attend college without Schroeder's help.

Carpenter Comps College Costs for 33 Iowans

July 23, 2019 3:50 PM
by Susan Dutca-Lovell
An Iowa Carpenter sent 33 Iowan students he'd never met to college with the $3 million he had in savings. Prior to his death in 2005, Dale Schroeder told his attorney that he wanted to use the money
Monroe College's IT system was hacked last week, disabling many of its technology systems and platforms as hackers demanded $2 million ransom in Bitcoin to restore access. Faculty, students and staff members were locked out of the college's websites but continued to attend class and hand in homework, regardless.

Another College Cyber Attacked, Hackers Demand $2M Ransom

July 16, 2019 4:16 PM
by Susan Dutca-Lovell
Monroe College's IT system was hacked last week, disabling many of its technology systems and platforms as hackers demanded $2 million ransom in Bitcoin to restore access. Faculty, students and staff
 Three San Bernardino County women who have been accused of stealing $1 million in federal financial aid from Fullerton college, in California, have been arrested by the U.S. Justice Department and are charged with various counts of mail and wire fraud. The scheme involved enrolling hundreds of mainly non-existent students, successfully applying for grants and loans and pocketing the money.

3 Women Charged in $1M Student Financial Aid Fraud

July 2, 2019 11:07 AM
by Susan Dutca-Lovell
Three San Bernardino County women who have been accused of stealing $1 million in federal financial aid from Fullerton college, in California, have been arrested by the U.S. Justice Department and

    Nothing says 'Merica like these Patriotic Scholarships as we approach Independence Day and remember how, in America, education is a great equalizer. Whether you are an American citizen searching for college scholarships or are studying abroad in the USA, these American-themed scholarships are for those who truly believe in the American dream. In the land of the free, we have plenty of free college scholarships to help you achieve your higher education dreams.

Patriotic Scholarships that Celebrate America

June 27, 2019 1:33 PM
by Susan Dutca-Lovell
Nothing says 'Merica like these Patriotic Scholarships as we approach Independence Day and remember how, in America, education is a great equalizer. Whether you are an American citizen