Education Secretary Arne Duncan will step up oversight of federal student financial-aid programs after an undercover government investigation found deceptive marketing practices at 15 for-profit colleges.
Duncan vowed to expand the Education Department’s enforcement staff, conduct undercover probes and increase the number of program reviews, according to a letter to Sen. Tom Harkin, D-Iowa, that was obtained by Bloomberg News.
Denver-based Westwood College will begin paying admissions officials a fixed salary Aug. 21, part of a series of reforms adopted shortly after the investigation’s airing last week. Industry giant Apollo Group Inc.’s University of Phoenix already announced plans to do away with using admissions targets in paying recruiters.
The Education Department will hire more than 60 investigators and increase the number of program reviews by 50 percent after the inquiry by the Government Accountability Office, Duncan said in the letter, which was confirmed by the department.
“The unethical and potentially illegal practices uncovered by GAO are unacceptable,” Duncan said.
The Education Department’s inspector general will review the GAO’s findings and could refer individuals for criminal prosecution, Duncan’s letter said.
