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Document Number: 8719

For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices - Testimony before the Senate Committee on Health, Education, Labor and Pensions. In 2009, students at for-profit colleges received more than $4 billion in Pell Grants and more than $20 billion in federal loans. GAO was asked to: (1) conduct undercover testing to determine if for-profit colleges' representatives engaged in fraudulent, deceptive or otherwise questionable marketing practices; and (2) compare the tuitions of the for-profit colleges tested with those of other colleges in the same geographic region. Among other findings, undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and all 15 made deceptive or otherwise questionable statements. (Gregory Kutz, U.S. Government Accountability Office, August 2010)...

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