Where for-profit colleges are noncompliant, the DOJ has shown its willingness to enforce compliance through a robust tool—the False Claims Act


Administrators and employees of for-profit colleges need to be aware of a federal statute that may not immediately associate with these institutions: the False Claims Act (“FCA”).

Pressure has been building from the Department of Justice (“DOJ”) to prosecute civil FCA cases against for-profit colleges in a growing number of areas.

Four such example areas include the 90/10 Rule, job placement rates, incentive-based compensation to recruiters, and enrolling ineligible students. FCA...

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