A federal investigation revealed that Baker College repeatedly lied to its students in violation of federal law. Now, the private college is on the hook for $2.5 million in fines.
MICHIGAN—Baker College, the largest private college in Michigan, must pay $2.5 million in fines to the US Department of Education after it was found to have violated federal law—namely by misleading students about its graduates’ job placement rates and potential salaries.
Federal officials announced the settlement agreement on Tuesday following a years-long investigation by the US Department of Education’s Office of Federal Student Aid, which determined that its students were misled based on the college website and marketing materials.
Among other misrepresentations, Baker College falsely claimed that its graduates had significantly higher job placement rates and salaries than they actually did, officials said. That included publishing “career outcome rates” on its websites that were inaccurate and misleading.
Baker College officials reportedly dispute whether or not federal laws were actually broken—but federal officials billed the conduct as a clear violation of the Higher Education Act of 1965.
Specifically, the federal investigation found that Baker College had misrepresented its graduates’ earnings—namely by using national data rather than data from its own graduates.
At one point, Baker College also published a list of more than 100 employers on its website that it claimed had hired its graduates. But federal officials found that at least 14 of the employers had actually hired the students before they enrolled—creating the impression that a Baker College degree had an impact on the employer’s decision to hire these workers when it did not.
Ultimately, federal officials determined that these “misrepresentations” could’ve harmed students—namely because they may have “reasonably relied on this information when considering their higher education options and potential outcomes,” officials said in a release.
In addition to the $2.5 million fine, Baker College has also agreed to scrub their website and marketing materials of all misleading claims, as well as provide copies of all new marketing materials to the Office of Federal Student Aid for review for at least the next three years.
Baker College must also send communications to current students and employees informing them about how they can submit federal complaints or provide information about misconduct.
“This settlement demonstrates the Department’s ongoing commitment to enforcing higher education laws and regulations and protecting students,” federal officials said in a release.
Still, Baker College President and CEO Jacqui Spicer told MLive that the college did not commit any misrepresentations and the resolution agreement “contains no admission of wrongdoing.”
“We believe the resolution enables us to move forward so we can focus on what matters most: offering a supportive and innovative education that empowers students to improve their lives and make a difference in the world,” Spicer said in a statement provided to MLive this week.
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