Search Page

Five universities in the United States agreed to settle a lawsuit accusing them of colluding on financial aid and admissions violations, according to new court filings. Yale, Columbia, Duke, Brown and Emory universities will pay a combined US$104.5 million to settle their portions of the case, which was brought by five former students against more than a dozen schools. The suit alleges the universities violated antitrust law when they ignored their pledge to not weigh a student’s ability to pay tuition fees when considering whether or not to accept, a practice referred to as ‘need-blind’ admission.

According to the State Chancellor's Office, 20% of applications for California community colleges are fraudulent. A radiation oncologist at UC Davis is one of the thousands who have had their identity stolen to create fraudulent student applications with the intention to steal federal aid, a practice that has resulted in an unprecedented influx of ghost students. City College of San Francisco reported 59 fraudulent students and has identified 29 ghost students who have received $22,418 to date.

Three Georgia women and an Alabama man pleaded guilty to conspiring to defraud the US Department of Education’s Federal financial aid programs worth millions of dollars. According to the Justice Department, they admitted enrolling people who were not eligible to attend college and completing financial aid applications using fake students’ names; they also did fake students’ homework and exams and manipulated grade requirements to continue qualifying for Federal financial aid.

The US Attorney’s Office arrested a nurse practitioner on federal charges of wire fraud, financial aid fraud and aggravated identity theft. She used doctors’ pedigree information and forged signatures to certify disability diagnoses that got more than $10.5 million in loans discharged for at least 125 people. She defrauded the federal Department of Education's Total and Permanent Disability discharge program, which relieves the student loans of those who suffer from permanent physical or mental disabilities.

A former Yale School of Medicine finance director and administrator pleaded guilty to wire fraud and false tax returns over a nine year period. She ran an illegal business that involved the bulk purchase and resale of computers and electronic devices for a total of $40 million in losses for the university. Since the incident, the university has worked to identify and correct gaps in its internal financial controls.

San Diego Ashford University, and its parent company, Zovio, have been fined US$22.37 million for fraudulent admissions tactics that left some students in serious debt and without degrees. According to San Diego Superior Court judge, the college has made bogus claims about career outcomes, costs and financial aid to lure vulnerable students to enrol in the online university programmes.

California community college officials uncovered the state’s biggest financial aid scam attempts: over 60,000 aid applications compared to 2019, from students older than 30 earning less than US$40,000 annually and seeking a two-year degree rather than a vocational certificate. Faculty were also beginning to question whether many of their ‘students’ were actually fake bot accounts. California community colleges have received more than $1.6 billion in emergency COVID-19 relief for low-income students.

The position of Director of the International Human Rights Programme at the University of Toronto was offered to an "academically unworthy" individual after US$8 million was donated to the university's medical schools. A US banking company, which reportedly made large donations through its foundation to at least 60 universities, demanded to teach a course from a particular political perspective. As a result, colleges and universities in North America are developing written policies to prevent undue influence from donors.

A 2019 report showed that $6.5 billion in foreign gifts to U.S. institutions were not reported. To hold colleges and universities accountable and ensure that their reporting is full, accurate, and transparent, the Department of Education enforces Section 117 of the Higher Education, which requires colleges to report all gifts and contracts involving foreign sources worth $250,000 or more.

Members of a special team at the Education Department that had been investigating widespread abuses by for-profit colleges have been marginalized, reassigned or instructed to focus on other matters, according to current and former employees. The investigative team had been created in 2016 after the collapse of the for-profit Corinthian Colleges, which set off a wave of complaints from students about predatory activities at for-profit schools. The institutions had been accused of widespread fraud that involved misrepresenting enrolment benefits, job placement rates and program offerings, which could leave students with huge debts and no degrees.