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A report released by the department says a project called the Distance Education Demonstration Program has shown that waiving financial-aid restrictions on distance-education providers did not lead to any problems. The rules were designed to prevent fraudulent correspondence programs from gaining access to federal student-aid money. But the report leaves out details about one instance in which an institution closed down after it took advantage of a rule waiver and was then found to be riddled with fraud.

The professoriate is a gatekeeper, determining a student's first exposure to ethical standards, traditions. Many observers of contemporary academic culture have documented cases if irresponsible and unethical behavior within the professoriate. Examples include lateness for class, use of vulgarity in scholarly forums, showing favouritism among students, improper use of campus funds, plagiarism, sexual liaisons with students, failure to properly perform administrative duties, and, most basic, unwillingness to uphold the value of truth in teaching and research.

Corruption in admissions procedure, the sitting of exams and the allocation of scholarships is rampant in Chinese universities. One positive outcome of a recent plagiarism scandal is the design of a code of conduct for students and professors by Beijing's University.