A major online college is being accused of running a scam whereby they enrolled ineligible students so they could receive Pell Grants and student loans. Students of the University of Phoenix now have unresolved debts of 36 billion dollars. Only 28% of the students have begun to pay down their loans, some paying as little as ONE dollar on their debts. That is a massive amount of cash. They were enrolling the homeless and people who never even graduated from high school. The UoP would falsely claim the students had their GED. Former employees have told authorities that the university would submit false paperwork in order to get the federal cash.
Onetime employees of the University of Phoenix say the for-profit company conducted a potentially multi-billion-dollar fraud on taxpayers by deliberately submitting false records to the federal government to enroll unqualified students and cash in on federal student loans.
Few single companies have the potential impact on the federal budget as the University of Phoenix (UOP). Attendees owed $36 billion in student loans, according to a 2015 Brookings Institute study. Only 28% of UOP borrowers have “paid at least one dollar of the principal balance on their federal loans within three years of leaving school,” according to the Department of Education (DOE) in 2017.
In legal documents and in interviews with the Daily Caller News Foundation, current and former employees described a corporate culture where “enrollment counselors” toil in call center-like environments. They said they were pressured to get anyone they could — including non-high school grads, who are generally supposed to be ineligible — to sign up for college, netting federal grants for the students and federal student loans that lined the company’s bottom line.
Some students are homeless and seemed unaware that they were being enrolled in college by salesmen, while others were aware of what they were doing but had no desire to actually be college students, the current and former employees said.