NEW: Government Watchdog Report Finds ED Must Bolster Investigations into False, Misleading Advertising by Colleges
Trump Administration had put investigations into substantial misrepresentation “on hold”
WASHINGTON – Today, Ranking Member Robert C. “Bobby” Scott (VA-03), Committee on Education and the Workforce, released a new report from the Government Accountability Office (GAO), which found that the Department of Education—particularly while under the Trump administration—has not adequately conducted oversight of colleges that substantially misrepresent themselves to students.
“When planning for college, students and parents should be able to trust that institutions are providing accurate information about their programs and their graduates’ success. Unfortunately, as this report confirms, the previous administration chose to effectively ignore its responsibility to hold colleges accountable for misrepresenting themselves to students and the public,” said Ranking Member Scott.
“Combatting misrepresentation is critical not just for prospective students, but also for all taxpayers whose dollars go toward supporting colleges and universities. I am pleased that the Biden-Harris administration has taken meaningful steps to address this problem, and I urge the Department of Education to fully restore its capacity to investigate substantial misrepresentation by colleges. I stand ready to work with the Department to protect taxpayer dollars and ensure that students have the information they need to make life-changing decisions about their future.”
Colleges engage in “substantial misrepresentation,” which is prohibited under federal law, when they provide students with inaccurate or misleading information, including information regarding their program offerings, costs, and graduate employment. Under the Obama administration, the Department of Education established an enforcement unit to address allegations of substantial misrepresentation and other misconduct. However, the unit became functionally inoperative under the Trump administration.
The GAO report documents the Biden-Harris administration’s efforts to restore the investigations unit. Additionally, it recommends that the Department of Education establish and update its procedures for investigating and enforcing penalties, which can include ending an institution’s funding under Title IV of the Higher Education Act, against institutions that substantially misrepresent themselves.
To read the full GAO report, Department of Education Should Improve Enforcement Procedures Regarding Substantial Misrepresentation by Colleges, click here.
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