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Fraud Alert Issued for Texas For Profit Proprietary Schools

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Dallas, TX (Law Firm Newswire) January 27, 2011 – An investigation recently found that for-profit colleges, also called proprietary colleges, are devising scrupulous recruiting practices that target single parents and low-income wage earners. These colleges then rake in federal funding by inflating their tuition costs to receive Federal Student Aid and Pell Grants.

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                                   Fraud Alert Issued for Texas For Profit Proprietary Schools
                                   Dallas, TX (Law Firm Newswire) January 27, 2011 – An investigation recently found that for-profit colleges,
                                   also called proprietary colleges, are devising scrupulous recruiting practices that target single parents and
                                   low-income wage earners. These colleges then rake in federal funding by inflating their tuition costs to receive
                                   Federal Student Aid and Pell Grants.

                                   For-profit colleges’ are growing rapidly because two-year community colleges are becoming more and more
                                   over-crowded. The National Association of College Admission Counseling issued a Higher Education Act Fraud
                                   Alert through reports that were made by Government Accountability Office.

                                   GOA’s investigation found that at 15 of the schools they investigated, for-profit college recruiters inflated the
                                   numbers that potential students could be earning after graduation, what ere found to be exaggerated, unrealistic
                                   potential salaries. They also found that a typical for-profit massage therapy certificate tuition was $14,000, as
                                   opposed to a mere $520 at a community college, according to their investigation.

                                   Not only that, some were also encouraging the undercover officers to falsify their financial aid forms. By doing
                                   so, these for-profit colleges are attracting students who would not otherwise qualify for a private loan, increasing
                                   the amount of federal money the school receives.

                                   “If you think that you have been defrauded by a for-profit school by misrepresented facts and accreditation
                                   status, seek legal counsel,” said Ty Gomez of Gomez Law Group of Dallas. “At Gomez Law Group, we are
                                   helping students fight back.”
                                   Undercover agents found not only defrauding and other unscrupulous practices, but also aggressive marketing
                                   tactics.

                                   Recruiters were found to pressure student to sign enrollment contracts even before speaking to a financial aid
                                   advisor and often confusing them about the true cost of their programs. As soon as some of the GOA officers
                                   registered an online application, no later than five minutes after did they begin to receive phone calls that
                                   bombarded them all into the day and night by the for-profit colleges.

                                   GOA presented their findings to a Senate Education Committee in August and heard from witnesses that said
                                   they were harassed from relentless phone solicitation from these for-profit colleges.

                                   It is believed that the federal funds that the for-profit colleges receive are used for aggressive marketing
                                   strategies. It has also been revealed that sometimes the college credits earned from these for-profit schools are
                                   not transferable and not even recognized under the national Accrediting Council for Independent Colleges and
                                   Schools because many schools disregard this rating and will not recognize the credits received from these
                                   for-profit schools.

                                   Call a Dallas school fraud lawyer at The Gomez Law Group or visit http://www.gomezlawyers.com.

                                   The Gomez Law Group
                                   14135 Midway Road
                                   Suite 250
                                   Addison, Texas 75001
                                   Phone: 214-389-0998




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