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A seven-month investigation revealed that a number of Chile's universities are illegally operating as profit-oriented businesses. According to a report conducted by a special investigation committee, eight universities violated anti-profiteering laws amidst findings of increased salaries among executives, circulation of finances between companies under the same private ownership and outsourcing of services as means of generating revenue.

The Department of Justice and four states filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation's second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011.

A new government report on recruiting techniques in the for-profit higher education industry finds instances of college officials urging applicants to invent children and to hide their savings as a way to leverage more federal aid.

Colleges, universities and other academic organizations received just shy of $2 billion in grants directed to them by individual members of Congress in the 2010 fiscal year, an Inside Higher Ed analysis shows. Earmarks are commonly derided as "pork barrel spending" because they are seen as attempts by legislators to keep their constituents happy (and voting for them).

An Arizona woman pleads guilty to running an elaborate scam that highlights what federal authorities describe as the vulnerability of online education to financial-aid fraud. The scheme embroiled Rio Salado College, home to one of America's largest online programs, in a half-million-dollar con.