On Campus Blog

GAO fraud video

The feds have put up the video on their investigation into for-profit colleges, along with a transcript.

A quick sample:

Example 4: Financial Aid Counselors Assisted Students in Committing

Fraud

Clip 1: Financial Aid Counselor tells student with $250,000 in the bank

that he should not report that money on his FAFSA, counter to Department

of Education requirements (Texas)

[ Financial Aid Representative: ] Is there a reason why you put this

amount in for cash?

[ Student: ] I got an inheritance last year. My aunt passed away. And

that's why I thought, well maybe I can go to school now. Does it--does

it affect anything?

[ Financial Aid Representative: ] Yeah. Frankly, in my opinion, they

don't need to know how much cash you have. That's why you don't have to

return anything.

[ Student: ] Oh, I didn't--I didn't know.

[ Financial Aid Representative: ] Yeah, just an FYI, they don't need to

know your cash.

[ Student: ] I didn't know.