Colleges need to ensure that not only are they telling the truth about their institution, but also that any organization – such as online program managers – are doing the same, according to a recent reminder from the Department of Education.
In a January 16 Dear Colleague Letter (DCL), the Department of Education reminded higher education institutions that not only are they prohibited from providing false, misleading, or inaccurate information on their educational programs, financial charges, or the employability of its graduates, but this also applies to statements made by the third-party servicers with whom they contract.
The DCL outlines three types of statements that, if made by an institution and/or its service provider, could qualify as a misrepresentation. Such statements may result in a finding that the institution has engaged in substantial misrepresentation and may result in a fine or other action to limit, suspend, or terminate access to Title IV funds.
The Department has become aware of multiple instances where institutions and/or their third-party service providers have made statements to misrepresent the school or its programs.
The detailed DCL provides information, including examples, on the following topics:
- False or misleading attribution of employment, status, or role with eligible institution
- Deceptive or misleading statements about an individual’s role in student recruitment
- False or misleading statement creating equivalency or identity between an eligible institution’s program provided by an external service provider and a corollary campus-based or residential program
Questions and comments can be submitted through the Contact Customer Support form link in Federal Student Aid’s Help Center.
