According to article in today's Chronicle of Higher Education, three former academic officers filed a lawsuit against Kaplan University defrauded the U.S. government of some $4 billion.

Yes...billion.

The suit claims Kaplan "enrolled unqualifed students, inflated their grades so they could stay enrolled, and falsified documents to obtain accreditation for certain academic programs." Kaplan is also accused of "paying its own employees to enroll in classes so it could meet the requirement that at least 10 percent of its revenue come from sources other than federal loans and grants." Kaplan offcials have vehemently denied all accusations.

This is the second lawsuit against a university for such practices, with University of Phoenix having a pending lawsuit of its own. If any of the accusations brought against Kaplan or Phoenix hold water, this will leave a huge black eye on for-profit institutions. It will also effect online learning and student recruitment. Further still, all the woes surrounding student loans will be compounded by this extra layer of controversy. Kaplan and University of Phoenix are both heavyweights in the acadmic arena, with expansive networks both on the ground and on the Web. It makes little sense for them to engage in such practices.


Emily Genao
March 14th, 2008