Lieff Cabraser Civil Justice Blog
For-Profit Education Fraud Against College Students

President Requests Additional Funds To Investigate Alleged For-Profit Education Fraud Against College Students, Taxpayers

President Obama is requesting additional funding to bolster the government’s for-profit college investigative unit following increasing reports alleging that for-profit colleges are defrauding American students, U.S. taxpayers, and the federal government. As reported The Chronicle of Higher Education this week, the $13.6 million request, part of the annual budget proposal to be submitted to Congress next week, will boost the U.S. Department of Education’s Student Aid Enforcement Unit, which investigates alleged for-profit education schemes.

In the last 18 months, more than 8,000 borrowers have applied for discharges from student loans awarded by the U.S. government and funded by taxpayers based on grounds of alleged fraud – because the colleges closed suddenly as students were mid-degree or colleges marketed and awarded “worthless” degrees, according to a U.S. News and World Report article.

Lieff Cabraser is investigating for-profit colleges and other educational institutions for alleged fraud harming college students and U.S. taxpayers.

The U.S. Department of Education offers detailed information on its website regarding defunct educational institutions, including loan discharges based on school closings.