Kaplan Closes Admissions, Federal Investigation

Posted by James on Aug 5th, 2010 and filed under category Loans News. You can follow any responses to this entry through the RSS 2.0.

Federal investigators are looking into claims that for profit colleges have been tied to fraudulent sales tactics and high pressure incidents while enrolling some students. Because of this investigation Kaplan University has stopped accepting admissions in Pembroke Pines and Riverside, California.

The school in Pembroke Pines had an incident where an admissions officer told some applicants that the school held the same accreditation as the University of Florida and Harvard. The same officer told the applicant that they would not be able to speak with a financial aid rep until they had filled out an enrollment contract.

Kaplan Closes Admissions, Federal Investigation

Kaplan Closes Admissions, Federal Investigation

Kaplan said they were also taking actions, which could include the firing or any personnel that violated their standards and code of conduct. For profit colleges have seen a huge rise in enrollments over the last couple of years, and have seen a healthy increase in funding, over $4 billion in Pell Grants alone.

Fifteen for profit schools have been under investigation after investigators posed as applicants with hidden cameras. The 15 schools were chosen at random and they were found to be participating in fraudulent practices. This goes against everything that the schools state in their rules of conduct and federal regulations.

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