“They lied to the students, promised them jobs, promised them outcomes, and they didn’t deliver.”
By Ronda Lee, J.D.
Writer and Attorney
Billions of dollars in student loans have been discharged for borrowers defrauded by their schools.
A lot of times those borrowers went to for-profit colleges. But not all of them.
Some highly regarded universities are licensing their name for use by for-profit schools, one expert said, but the education students receive isn’t from the institution.
“There’s been a real uptick in recent years of legitimate, even highly prestigious institutions, offering programs in partnership with some for-profit companies where they are essentially outsourcing the entire education,” Dan Zibel, chief counsel and vice president of Student Defense, told Yahoo Finance Live (video above). “So you think you’re getting an education from XYZ university, a top tier internationally known university, when in reality what you’re getting is they’re licensing their name…primarily for revenue for the institution and perhaps the company that they’re in partnership with.”