Banking

Be careful when choosing a for-profit college

Former students and employees of for-profit colleges are suing the schools they claim lied to them or misled them.

You know a college has issues when lawsuits are filed against it by, not just students, but employees and shareholders. The Government Accountability Office report was released Aug. 4, and class-action lawsuits have now been filed in California, Colorado, Arkansas and Utah by former students and employees, who argue in most cases that a school lied to them or misled them.

Since the Government Accountability Office report was released Aug. 4 found deceptive practices at 15 campuses, there has been a flurry of lawsuits against for-profit colleges.

According to USA Today:

Some companies, including the University of Phoenix and Westwood College, closed campuses or launched internal investigations after the release of the report, which found that admissions officials in four cases encouraged applicants to commit fraud by lying on financial aid forms.

Shareholders have filed class-action lawsuits against at least five schools, noting the effect of the report on stock prices and citing securities fraud.

Some problems students are reporting is that the colleges were misleading when they told them how many of their previous college credits would carry over, which in turn, cost her more. Some students owe upwards of $30,000 by the time they get an Associate's degree.

Be sure to do research on a college before you enroll. Also, check out its accreditation status. That can determine if your credits will carry over or not.

About Toni Bowers

Toni Bowers is Managing Editor of TechRepublic and is the award-winning blogger of the Career Management blog. She has edited newsletters, books, and web sites pertaining to software, IT career, and IT management issues.

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