It is not the way that I intend to run this university," Pepicello said.Įxperts say recruiters who are misleading students may only be the tip of the iceberg. The university president said that there was no excuse for a recruiter to push someone to borrow to the max. No one says, What happened to this money? You received a check for $562, where did you spend it? They just tell you use it for educational purposes. Producer: What are the kinds of things though? I mean in terms of like that I could use it for? I mean, what if I just.because you're going to have to have money to walk around. ![]() ![]() But it's easier to take out more than you need and send back the excess versus you didn't take out enough. Recruiter: I tell students to take out the max and whatever you don't need or you don't use then use it. She also said that there might even be some money left over after tuition was paid. The recruiter also told our undercover producer he could take out as much as $35,000 in federal financial aid to pay for school. Recruiter Tells Student to Borrow to the Max I mean, it's certainly proof that we weren't doing as well as we could. "No, I wouldn't say it's proof that we got caught. When asked if the 2009 settlement was a sign that "we got caught," Pepicello disagreed. The two whistleblowers received $19 million in the settlement. In December 2009, after two former employees came forward and accused the university of violating federal financial aid regulations with its recruiting practices, without admitting wrongdoing the school agreed to pay $67.5 million to resolve the accusations. And we can do better, we will do better, you know, we already have some initiatives that we talked about that we're putting in place because at the end of the day, we have to get it right."īut this was not the first time that the university's recruiting practices have come under scrutiny. Do we train our people to give that kind of misadvice? Absolutely not. William Pepicello, president of the University of Phoenix, about the recruiter's false promise, he said it was "indefensible." Even with successful completion of the required certification testing, a degree from the University of Phoenix does not guarantee a teaching certificate in either of those states. What's your e-mail address?ĭespite her assurances, the recruiter's claim was not true. Recruiter: Then you can become a teacher. In total, she took out about $8,000 in federally-guaranteed student loans. Since she didn't have enough money to pay for tuition, she said the recruiter helped her get federal student aid. " they had an agreement with Illinois State Board of Education and that as soon as I finished their program I'd be ready to start working," she recalled. A few minutes later, Dalmier said she got a call from one of the school's recruiters, who she said told her that enrolling in the associate's degree in education program at the University of Phoenix would put her on the fast-track to reaching her dream. The mother of three had big dreams to be an elementary school teacher, so when she saw ads for the University of Phoenix pop-up on her computer, she e-mailed them for more information. "I don't want anyone else to be sucked in," said Melissa Dalmier, 30, of Noble, Ill. ![]() ![]() But some former students said they were duped into paying big bucks and going deeply in debt by slick and misleading recruiters. The University of Phoenix, with nearly 500,000 students, is the biggest for-profit college. 19, 2010— - Ads for online schools are all over the Internet, plastered on billboards in subway cars and on television.
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