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For-Profit Education Fraud

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Some for-profit education institutions have been accused of fraud for misleading students about accreditation, transferability of credits and costs associated with education. Lawsuits alleging consumer fraud a violations of state and federal law have been filed against some for-profit schools alleging students were tricked or misled into enrolling at the schools.

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For-Profit School Lawsuits

collegelecturehallarticle.jpgSome for-profit schools, including Everest College in a lawsuit filed in 2010, have been named in lawsuits alleging they systematically misled students into taking courses at their institutions. Among the allegations made are that students were lied to about the school's accreditation and about the transferability of credits from the schools. As a result, students enrolled in the schools believing their courses would be recognized or transferable to other post-secondary institutions, only to find out that was not the case.

Furthermore, some colleges are alleged to have lied about the cost of their programs, giving students an estimate for course costs, but then having students apply for loans for much more than the estimates given.

In 2011, the Department of Justice filed a lawsuit against the Education Management Corporation alleging, among other things, that recruiters made exaggerated claims about career placement to entice students to enroll, even if the students were not qualified.

In 2013, a jury awarded a plaintiff $13 million in her lawsuit against a for-profit school, after she alleged she was misled about the program she enrolled in, according to Consumerist (6/21/13). Among the allegations were that she was told she was in one program but was really in a program for a different job and would require more training. When she continued with her training she learned her certification was not required for the job she wanted.

For-Profit School Fraud

In 2010, the Government Accountability Office (GAO) investigated for-profit colleges. While investigating 15 for-profit colleges, the GAO found that four colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements to undercover applicants. These included exaggerated potential salary for graduates, false or misleading information about a program's length or costs, pressuring students to sign an enrollment contract before allowing discussion with a financial advisor and repetitive recruitment phone calls.

For-Profit College Lawsuits

Various for-profit schools have been accused of misleading students into taking programs they did not need for the jobs they wanted, lying about courses being transferable to other schools, lying about their accreditation, and/or misleading students about the costs associated with their programs. It is only after students are in or finished their programs that they unnecessarily spent money on programs they did not need or that would not get them the jobs or qualifications they wanted.

For-Profit Education Fraud Legal Help

If you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
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EDUCATION FRAUD LEGAL ARTICLES AND INTERVIEWS

DeVry University Settles FTC Fraud Lawsuit for $100M
DeVry University Settles FTC Fraud Lawsuit for $100M
December 16, 2016
Santa Clara, CA: A $100 million settlement has been reached between DeVry University and the Federal Trade Commission (FTC) over allegations of for-profit education fraud, specifically, that the for-profit university used false statistics about its graduates’ job placement rates in order to lure students and increase enrollment.

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READER COMMENTS

Posted by
Gina B
on
I also went to Everest college Phoenix for medical assisting program from 2011-2012. I regret going to this school, they did not help me with job placement like they said they would. Now I have a student loans That I am currently trying to pay back. All for nothing. I would like information on what my next steps would be after the fraud allegations for students who attended from 2010.

Posted by
Kathleen Penick
on
I graduated Everest College in 2010 and received a degree in Medical Assisting with a 3.8 gpa and I could not get a job as promised I would after graduation. The Everest College employees fraudulently represented Everest College and I have suffered losses because of this. I have personal school loans still owed. Everest Corinthian Colleges lied about transferrable credit, guaranteed employment, pay rates, etc. My plans after graduation were to leave my partner and be a financially secure single mother since my daughter and I were trying to get away from domestic violence in our home and as a Medical Assistant I was planning to be able to provide for my 4 year old daughter without his help after graduation. Instead, I found disappointment and I was further in debt and my credit score was lowered. Nobody would hire me unless I had 2 years experience in Medical Assisting and my daughter has had to live with her father. To this day, my Medical Assisting degree has been useless. My life and my daughter's life went downhill because the abuser was able to obtain more control and consequently keep my daughter from me through underhanded tactics. Corinthian College/Everest College could never make up for what their lies have done to my family. The reality of their fraudulent behavior should not be overlooked and Corinthian College/Everest College and and schools like them should be stopped from their unscrupulous business behaviors and be punished for their selfish profit and further lowering of self-esteem of their students, as well as the suffering of their students above and beyond what is suppose to be ever tolerated for these schools selfish profit only.

Posted by
Stormy l. Felchle
on
The school promised me that my record didnt effect my future in the medical feild...with my Dad sitting beside me wittnessing all that they promised...she told me the past doesnt matter....over and over i asked if she was sure...then i had a little talk with my Dad and it all sounded good so i signed up and let me tell you it was that moment that rounied me. I went to school everyday..i never did high school so college life was very scarry for me...but i was doing it i thought....and a new life was gonna be great. I went all the way up to my 3rd. Mod and the a bomb hit me....a fellow class mate wasnt even allowed to do her inturnship with a misdemeanor and here i am with felonies..it was disturbing to and no one would help me. No one has helped me. I wanna go to school to be a vet tech and now i can't. Please help

Posted by
Tara pederson
on
Hello I used Phoenix university online school called Axia. My associates degree did not say what they stated it would say. When I tried to transfer I found out they are a quarter credit school & had very little if any that transferred. I also had decided to return to school b/c st the time Michigan had a program for funding that helped mothers go to college but axia claimed I didn't qualify b/c the school was not in Michigan, yet they have a campus right in livonia where I live. I feel I have been mislead and scammed. I also entered into a government program for a reduced rate to pay my student loan and that also seems very fishy.

Posted by
Janette C.P.
on
Accreditation and reputation is my issue. It was explained to me that my degree would carry the same value as a degree obtained from well-known universities, and that I would have no problem continuing my education afterward. I was also told that the only difference between Everest and other universities was that their hours were more convenient for the working individual. Since graduation, I have been questioned about my competence while seeking employment, because of where my degree is from. I have also had a hard time applying to certain schools to further my education, because my degree is not regionally accredited. These are things that were not made clear to me upon enrollment all they did was sugar coat the truth to reel me in. Now I have this huge debt, I cannot pursue a second bachelor’s or a masters from a reputable university because of my undergrad debt, and the accreditation of my degree/credits. Help, I feel stuck!

Posted by
Melinda Johninson
on
I attended Everest University Online from Jan 2009 to July 2010. I enrolled part time in their Criminal Justice Program. I have never been on their campus for any reason. I must say their Administrative Staff was one of kind. The Administrative Department completed all of the ground work for me. All I had to do was give them my personal information. I never realized how deceptive they were until I withdrew because I was not satisfied with their program. I truly regret making that phone call to them after watching their Commercial.

Posted by
Enisa
on
I also attended Everest College to get a diploma/certificate in Medical Billing and Coding I did get a diploma but I was over charged my program was suppose to cost about 5-6k and here I am about 8 years later paying on abut 10k worth of student loans for something that is not even valid. I was 18 a the time and my parents wanted me to attend college and since Everest was the closest school they convinced me of signing up and attending they were really good at selling the benefits and one was that it was cheap and fast also that they will help me find a job before I even graduated I have never had any assistance from the school as far as getting a job or even an internship or an externship. I was told if I was not able to find my own that they would kick me out of the school and I would not get my diploma. This is the worst school ever.

Posted by
LeDavid Sanders
on
If you have not already please go online and join the debtcollective.org and also look for the facebook group called Everest Avengers.

This is where other former students has found help and support.

Posted by
jennifer rodriguez
on
Everest orlando 2010-12 . never recd cap amd gown to graduate. Was put into wrong degree program (AA vs AS)

Posted by
Ellen Schoenfeld
on
I attended and completed all requirements for my masters degree in Business Administration through Everest University. I currently have over $100k in student loan debt and I am not sure how those numbers add up. When I "graduated" I got calls from the university about job placement asking me what "field" I would want to work in and basically was told there were no jobs in my area to offer me other then sales jobs. For what I paid for the useless piece of paper I now have I find it appauling. They were able to close their doors and stick their students with the bill. How do we go about getting forgiveness for entrusting what was thought to be a legitiment school. I work for a company and my job has nothing to do with Business Administration. Beyond frustrated.

Posted by
Betty Gross
on
I am recently divorced over 55 and for the first time in over 30 yrs and have to support myself. I went to Everest for MICB and was told that I would be able to earn 35,000.00 to 40.000.00 starting as a Medical Biller/ Coder. They had me extern at a Chiro office that was not even using computers for anything office related. I was not hired, the "job referrals they told me to apply to were nothing more than "Craigslist postings". I still do not work in the medical field. have more debt than I was told I would have and have been turned into collections. Please help.

Posted by
Christina Marie Kidd
on
I went to everst college in 2009 graduated in 2010 in hopes to get a good paying job I still have a student loan and can't pay it back I'm working as a full time cashier at a grocery store. We all need help to get our money back from this lying school and we should not have to pay one cent they should be the ones who pays. I get phone calls after phone calls about my loan I just tell them sorry but I refuses to pay for somthing Tustin not even working in my felid. It's time for us all to bring this lying school down they told me they would help me find work after I graduated and well you know what Careerbuilder Is not Helping me place a job It's having me do it on my own So this said We all need to get our money back

Posted by
Ebony Nelson
on
Hello I attend Everest in 2015 and was student until they shut the doors. I am trying to find legal help,because they have sent me to a debt collectors. I believe I don't need to pay these people back. I suffer from ptsd and because of them have suffered emotional stress. If something can please send me in the right direction.

Posted by
Brittany Donaldson
on
Graduated in 2009 from Everest in hopes of becoming a "certified" MIBC...I also was told I'd have work and be able to make 40k plus a year minimum once certified. Not only did I not get certified upon completing the course as promised but after my internship there was no job. Every job I applied for required 4 years experience and a state certification. Needless to say I am not able to work in that field. I am currently still struggling to obtain stable work. I want to be part of the class action lawsuit as I am now 15k in debt because interest is accruing bc I have to defer due to the fact I don't make enough to pay it nor do I feel I should have to pay for my fraudulent education. My prayer is that this can be resolved once and for all. I've heard about the lawsuit against Everest for years but my debt still exists. How can I take care of this once and for all? Please help!

Posted by
Lindsey C
on
I was promised online education and a job on a silver platter. I was 19, & a new mom. I told my advisor I needed an online school for my AA which I needed to transfer to a university. His name was Jason, he lead me to believe that all I had to do was sign some documents send them back and I would get a laptop (mine when i finish the program, sent it back to avoid being charged) and all my books in the mail. I could finish in less than 2 years in Criminal Justice. He said that id be given job placement. Multiple times I changed the topic back to my original concern, CAN I TRANSFER THESE CREDITS? He assured me I could. Then after a year in school they told me that they were losing accredidation and they were telling me because they were required to do so, but they then made me feel threatened if I didn't finish the program. I decided to take some time off from school to see about transferring right then. However, the junior college I submitted my transcripts to refused my credits and told me I'd have to start from scratch. I have $18,000 in loans for credits that I can't even locate transcripts for. The AZ state Board of post secondary education stated that the USB drive that Everest sent them was unreadable. The Government said I make too much money to qualify for help. I work my ass off to be where I am and make the money I do. The guy actually admitted that I would HAVE TO QUIT MY JOB AND LIVE OFF OF THE STATE OF CA TO QUALIFY for forgiveness! That's not helping our country in any way! I refuse to pay for loans I shouldn't have because I'm a damn good citizen who works to feed her kids and is still attending school because I had to start all the way at the beginning again! I will sue anyone who stands in my way! A letter to Obama is being sent. I'm so frustrated with this whole situation. I make $51k a year in a field I never intending on going into. I had no other choice and STILL qualify to attend college for free ONLINE as of today with a BOGG waiver. How I can't get these loans forgiven blows my mind! I'm taking this one all the way to the top! I hope you're all ready for this fight cause it's going to happen! Count me in on any class action suit.

Posted by
Natasa Korac
on
I went to Everest Collage Phoenix and this is the biggest waste of my time; the only thing I got out of this school is a student loan. I would like to be part of this action lawsuit against Everest College.

Posted by
Charlene Ruiz
on
I went to asa college in brooklyn ny they stated they were accredited therejob pplacement would definitely get me a job none was true I went to asa from 2002 until 2007 the were not accredited until 2010 by middle states higher education commission I have proof they job I found not through asa was a food server in a hospital my medical assisting or billing were no good asa still claims they were accredited in 2005 my proof states they were just being considered for accreditation I really need help I became totally and permanently disabled 2009 federal loans are being discharged I need help with private ncs says I owe them for a private loan I have never signed a loan contract or agreement with national colligiate student loans

Posted by
Joyce m Jordan
on
Hello i also attented Everest College in 2006 and finished the program ub 2007. I was told that u would make 30_40,000 a year and could be on my way to a career at the time u had two young kids and no job. No damily support. All to believe when i graduated no one returned my calls for job placement. I met with counclers after the program was finished and they wabted to know how was i gon pay back the 4000 that i thought was only 2000 i was devastated that i could not get a job i was promised. I had loan after loans didnt know how i was going to pay pay back loans that i was told was covered by finicial aid. Please help me how can i be part of this class action lawsuit. Sallie mae is the worst and im still recieving ecmc mail today. Help please.

Posted by
Veronica gutierrez
on
Hi my name is Veronica Gutierrez I am a single mom who attended Olymipa College which later became renamed Everest College I attended in 2006 I was told that the Medical Assisting program that I was interested in would help me attain a job ranging from 15-20 dollars per hour. I finished the program and was left with empty promsies and no real job prosects when I went back to meet with the job placement department they were no help and unable to find me any jobs. I was told that I only needed to privately borrow 2000 for my program upon graduation I am getting calls from Sallie Mae that I borrosed 4000 on my own for school and 2000 was borrowed with my co-signer. I also had the school tell me that I would only be responsible for the 2000 to pay back when in reality they also had me borrow subsudized and unsubsidized in the amount of 6500 which is affecting me greatly now. I am in a B.A. program at North Park University and I am finding my self in a position where my financail aid has run out and in part this 6500 could be used to fund my last year of education in addition to the pell money of 3500 which also went to these crooks.
How can I do something

Posted by
Marie Rodrigue
on
I started online courses with Everest College Phoenix in November of 2009. The recruiter told me I would get a computer from them and if I completed the program it was mine to keep. I was told the work in the accounting field which is what I wanted to earn a degree in was plentiful. I told the recruiter I was moving to NC. He told me upon graduation I should have a job within a couple of months and I would not have to start paying my federal loans back until 6 months after I would graduate. I told the recruiter I couldn't afford a large payment and he told me my payment would only be a couple hundred dollars a month. My federal loans are almost $350 a month. The recruiter told me that my credits were transferable with any college if I wanted to go back to college to further my degree. I have checked with 2 different colleges and they would not accept my credits. I asked them why. They stated that Everest College was not an accredited college. When I was going to begin my last term, I received a phone call from the college telling me my loan funds had run out and I needed $2,000. I told them I did not have $2,000. They told me I couldn't finish my last term or graduate unless I came up with the money and forced me to take an additional private loan out for what I thought was $2,000 when it was actually for $2,500. Oh yes I believe I am a victim of fraud. Before I signed up they told me they were an accredited college and they lost their accreditation before I ever graduated. They also told me I would be assisted upon graduation with job placement services. All they ever did was sent me online job ads. I can do that by myself. I am so frustrated. They should not get away with this. Now with all the negative media about Everest College my degree is absolutely useless.

Posted by
Tanya Bresach
on
My name is Tanya Bresach and I attended Everest University Online the Orlando South campus. I have read numerous of articles that you have written about these schools and I feel Everest University did the same thing to me after reading so many comments. I believe they have committed fraud against me and I am so trying to fight to not pay back the loans that they do not deserve to have. They promised me so many things to get me to attend one of their schools. believe they prey on the weak and knowing someone wants to better themselves and yet they turn around and lie to you. The first question I asked them before I attended their school was if they are accredited. They told me "Yes" however they did not tell me that they were not regional accredited which I just learned the difference of what that means. I learned that I am not able to transfer any of my credits to any school because they do not honor Everest University; however, they are one of the most expensive schools to attend which I did not know at the time. I did try to get out of the school several times but they stated that I would still owe all that money to attend the school. They also promised that once graduation that someone would keep it contact with me until I find a job. That was a lie. I was told that they would do mock interviews and help with my resume and cover letter which they did not. In fact, I am the one that did my resume and cover letter and looked for jobs. I was only able to get a 12.40 an hr job which that is barely keeping me afloat and yet, I supposedly have the bogus degree that suppose to help me get hire up. If I knew a university would have treated their students this way, I would have never gone to school. I really worked hard at this school and yet it seem like it was very easy to get "A" in a class. Plus when you called the school, you always got someone patching you through different people and I had so many student advisers' and non of them had voice mails so I was unable to leave a message with them directly. When I tried to leave a message with someone else, no one ever called me back.

Just recently, I found out that Zenith bought Everest out but they are just as bad as Everest. I had a career adviser that called me. His name is Pedro Fernandez. He promised that he would not leave me high and dry just like Everest. He gave me one mock interview and promised that there will be more. I did not hear from him for weeks. I told him the last time we spoke that I was fighting FAFSA so I do not have to pay my student loans back. I just emailed Pedro after not hearing from him for a long time asking for my transcripts because FAFSA needed proof of attendance. After about a day, he emailed me back and said that he has been reassigned to another part of the country and that he transferred my email to a representative in Oregon. I had to email him back to get the contact information of that representative because he did not give it to me. Apparently, his name is Douglas Lanier. I have been trying for over two weeks to get in touch with this guy and he still has yet to call me back or email me.

The reason I am emailing you is because I know you are good at what you do and getting the word out about Everest mistreating their students. If you know anyway you can help me or get me in touch with someone that can, please let me know. I am really upset because I was so proud of myself for finally accomplishing something and now I do not believe I accomplished anything. I just wanted my kids to be proud of me.

I greatly appreciate all of your help

I want to be part of this class action lawsuit

Posted by
Yolanda mercado
on
I went to Everest April 2009 Skokie.Il in hopes to find a Job being a single Mother having a hard time raiding three kids, Boy was Everest a BIG MISTAKE !!! Not only did they give me false hope. I struggled trying to find jobs, trying to pay back all the debt I was now in. I tried to reach out numerous times for help but still until this day no one has helped me. I could not pay back all this money and bring a single mother no one cares I received numerous calls. These past three years they kept my income tax checks in which I was looking forward to all year, to help me and my kids to survive and nope they took my money.
They are so misleading and need to be shut down I would like to be part of this action lawsuit against Everest College.

Posted by
miss Jones
on
I went to Everest in 2007 when i got laid off. BIG mistake! Not only did they give me false hope, i was an adult living on my own and was told my mom had to co-sign. Here it is years later and NO-ONE ever tried to help with job placement. The debt collectors call all day, they're rude and speak in an unprofessional manor. They try to use scare methods to make you pay them. Also come to find out they had been garnishing my mom's disability payments. We had been trying to find out who was doing it but we never could. I didn't find out until after she'd died in 2012!!!!
These people should be SHUT DOWN permanently!

Posted by
Minnesota
on
I was enrolled in their business management program for my bachelor’s and on August 29, they closed with only a week’s notice. I had 99 credits and was supposed to graduate in March of 2015. I tried going to another college but they are only willing to take 36 credits because not all of the classes were transferable. I am now $36,000 in debt and without a degree.

Posted by
Maryland
on
I enrolled in April 2009 to get my bachelor's degree in legal studies. I then switched to human resource management. After graduating and receiving my degree, I e-mailed the provost to tell him there was an error in my degree that stated Bachelors in business management instead of what I signed up for -human resource management. I was told they don't offer that degree. I explained to him that's what I signed up for and on my classes my major is listed as human resource management. I sent this information to higher education in early 2011 directly after the back and forth e-mails with the provost. I could have gone to another college that would have given me the degree I sought, as opposed to being stuck with student loans and a degree in a major I didn't want.

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