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Colleges Deceive Applicants

By Randall Ryder

Applying to colleges is a stressful experience for most people. Where will you get in? How much will it cost and how will you pay for it? Unfortunately, according to a new report, some colleges are misleading students about their programs and even encouraging students to lie on their financial aid applications.

What can graduates expect?

The report states that certain schools are apparently misrepresenting graduate salaries in an attempt to entice applicants to attend the school. For example, one school told an undercover applicant that barbers could earn $150,000 to $250,000 a year.

If you are applying to a school, be sure to do your own research about how graduates do in the real world. An easy way to do this is to request the names of some alumni that you can speak to.

Lying on financial aid applications?

Many schools receive the majority of their income from student loan payments—up to 90% of their revenues. As a result, some schools may encourage students to submit fraudulent financial aid applications. For example, a school told an applicant who alleged he had a $250,000 inheritance that he should indicate on his financial aid application that he had “zero” in savings.

Do as much research as you need

With the economy in the tank, the job market is ultra-competetive. If you are considering pursuing a degree, make sure the program is right for you. Specifically, will it help you get a job that can pay for living expenses and pay back any loans? Is there another school that is cheaper but the graduates are also successful? How will you pay for school? How much do you need to take out in loans?

Going to college is a big decision. Be sure to do your research, shop around, and make an informed decision.

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Full post as published by Caveat Emptor on August 05, 2010 (boomark / email).