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According to an opposition leader, the businessman Agarwal's pledge last week of $1-billion to set up Vedanta University, in the South Indian state of Orissa, is a gimmick to divert attention from his corrupt mining deal with the state's government. The $1-billion pledge, which if realized would be the largest gift ever made to a higher-education institution, is intended to create a multidisciplinary elite university for 100,000 students that would open in 2008.

Compton community college lost its accreditation from the Western Association of Schools and Colleges in June. The regional accrediting body cited poor governance, lack of education plans, lack of student support services, and an inadequate administrative staff as reasons for revoking the schools accreditation. The school is now being taken over by the state, despite California's highly decentralized system.

Since February 2004, the Centre for Legal Assistance in the Fight Against Corruption, has received over 3,500 complaints on its toll-free number. Over 40% of the total calls, refers to the work of the local administration bodies, while in 25% of the cases, corruption was reported in the education system. The problem is particularly prominent in the higher education, since they receive complaints from both professors and the students.

The Department of Education has launched a website which features a list of 6,900 academic institutions accredited by an accrediting agency or state approval agency. The website is designed to help employers distinguish between accredited institutions of higher education and unaccredited institutions commonly as "diploma mills" that offer bogus degrees.