WASHINGTON – Secretly-recorded videos of shady practices within the for-profit college sector got aired Wednesday during an occasionally testy Senate committee hearing that probed the extent of those practices among the proprietary schools.
“Critics say it’s only a few bad apples. But I question if it’s the entire orchard,” said Sen. Tom Harkin (D-Iowa), chairman of the Senate Health, Education, Labor and Pensions Committee.
Harkin was referring to for-profit colleges as a whole in light of a new Government Accountability Office (GAO) report based on an undercover investigation this summer that found 15 out of 15 for-profit colleges had made “deceptive or otherwise questionable statements” to GAO workers who posed as prospective students with hidden cameras to conduct their investigation.
The for-profit college sites that were targeted by the investigation were: the University of Phoenix in Arizona and Pennsylvania, Everest College of Arizona; Westech College and Kaplan College, of California; Potomac College and Bennett College, of Washington, D.C.; Medvance Institute and Kaplan College, of Florida; College of Office Tech and Argosy University, of Illinois; Anthem Institute, of Pennsylvania; and Westwood College, Everest College and ATI Career Training, of Texas.
Four of the 15 school sites the GAO investigated this summer encouraged students to commit fraud, according to the GAO report titled For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices.
The schools’ practices are of concern, Harkin said, because they are reaping a growing amount of federal aid–$23 billion today versus $4.6 billion a decade ago—that is flowing largely into the pockets of their executives and investors.
“I’m not certain regulations will suffice,” Harkin said at the hearing, titled For-Profit Schools: The Student Recruitment Experience.