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"Undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and that all 15 made deceptive or otherwise questionable statements to GAOs undercover applicants. Four undercover applicants were encouraged by college personnel to falsify their financial aid forms to qualify for federal aidfor example, one admissions representative told an applicant to fraudulently remove $250,000 in savings. Other college representatives exaggerated undercover applicants potential salary after graduation and failed to provide clear information about the colleges program duration, costs, or graduation rate despite federal regulations requiring them to do so. For example, staff commonly told GAOs applicants they would attend classes for 12 months a year, but stated the annual cost of attendance for 9 months of classes, misleading applicants about the total cost of tuition. Admissions staff used other deceptive practices, such as pressuring applicants to sign a contract for enrollment before allowing them to speak to a financial advisor about program cost and financing options. However, in some instances, undercover applicants were provided accurate and helpful information by college personnel, such as not to borrow more money than necessary. "
http://www.gao.gov/new.items/d10948t.pdf
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