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  1. What We Do
  2. Predatory Lending & Private Credit
  3. Scam Schools

Scam Schools

Students deserve a quality education—not deception and debt.

Predatory for-profit schools plague the American higher education system, aggressively recruiting students into high-cost, low-quality education and training programs with false promises. As the abuses of this industry continue to come to light, Protect Borrowers has launched investigations into the companies and practices that allow these schools to operate with impunity, raking in billions of dollars in federal student aid while student loan borrowers are driven deeper into debt.

WHAT WE’RE DOING

Investigating For-profit colleges

Private companies claim to provide education and training to students across the economy, promising careers in fields from tech to healthcare. Too often, these companies scam students, promising the American Dream and delivering debt and distress. We investigate and build lawsuits against scam schools, including the corporations that run global for-profit colleges and fly-by-night training providers who target first-generation students, military families, and students of color.

Holding Private companies renting schools’ brands

Across higher education, private companies known as Online Program Managers or OPMs contract with colleges and universities to provide services ranging from marketing, recruitment, and advertising to instruction and curriculum development. Often, students are unaware of the existence of the private company and the role it plays in their education. Students take on debt to access what they believe to be a quality education from a name-brand institution with a good reputation, when they’re actually attending a low-quality online program run by a private firm. We are working with policymakers to protect students from OPMs, and calling on regulators to investigate the partnerships and enforce existing consumer protection laws.

By The Numbers

1-in-3 students Secure a job

Data from one Online Program Manager shows that barely one-in-three students, and just one-in-four Black students, who enroll in its university-branded coding bootcamps ultimately secure a job in their field of study.

100s of 1000s borrowers

Hundreds of thousands of borrowers have attended scam schools and are waiting for student debt relief.

$Millions per year

Private companies that rent schools’ brand names for online programs rake in millions of dollars per year in revenue for OPMs and their school partners.

In The News


  • News Clips

    A shady, shuttered tech bootcamp may be sneaking back online / And the watchdog agency that oversaw it is being dismantled.

    READ More


  • News Clips

    Advocacy Group Urges U. of California to Do Away With Boot Camps Run by OPMs

    READ More


  • News Clips

    When universities slap their names on for-profit coding boot camps

    “What you have is trusted brand-name schools, from community colleges to state universities, knowing that they have these valuable brands, and literally renting them out to for-profit companies.”—Ben Kaufman, director of research and investigations at the Student Borrower Protection Center

    READ More

Featured Work


  • Press Releases

    As CFPB Enforcement Folds, Predatory Tech Company Prehired Defies Government Order to Cease Operations and Continues Defrauding Students

    SBPC released the results of a months-long investigation into the tech company Prehired, exposing how the firm had resumed its scheme to push worthless credentials on students, paid for via its own predatory private student lending operation.

    READ More


  • Investigations, Letters & Memos

    Predatory Tech Company Prehired Defies Government Order to Cease Operations and Continues Defrauding Students as “FastTrack”

    SBPC released the results of a months-long investigation into the tech company Prehired, exposing how the firm had resumed its scheme to push worthless credentials on students, paid for via its own predatory private student lending operation.

    READ More


  • Blogs

    Mounting Evidence from State Watchdog Report Proves That, Yet Again, Public Universities Are Selling Out Students to For-Profit Companies

    Over the last few years, SBPC has been sounding the alarm on the risks of university partnerships with Online Program Management (OPM) companies and how these for-profit entities harm students. Now, a report released by the California State Auditor has confirmed many of the worst concerns we have raised.

    READ More


  • Press Releases

    Advocates Sound Alarm: Online Ed-Tech Giant’s Looming Collapse Spells Disaster for its Student Loan Borrowers

    Today, SBPC and partners sent an urgent letter to the CFPB and the Department of Education warning about the potential collapse of ed tech giant 2U, inc.

    READ More


  • Letters & Memos

    Letter to the University of California on Completing the Work of Protecting Students from Predatory Online Programs 

    The SBPC sends a letter applauding the University of California’s recent decision to ban fully online degrees, while urging it to fully protect students from predatory online program managers by also banning fully online non-degree programs.

    READ More


  • Reports

    Selling Out Students: A Case Study in Brand-Name Schools Partnering with For-Profit Scammers to Make a Buck

    This report exposes a scheme by the failed for-profit coding bootcamp Make School, Inc. and the private non-profit college Dominican University to drive hundreds of largely low-income students to each take on thousands of dollars of predatory private student loans and, for some, federal student loans.

    READ More


  • Letters & Memos

    Letter to the Department of Education Regarding Low-Financial Value Programs

    SBPC calls on ED to use its existing authorities more robustly to weed out predatory courses of study.

    READ More


  • Blogs

    OPM Contracts Reveal Risks for Students and Universities

    In a new paper, we analyzed hundreds of contracts between colleges and online program managers. What our analysis revealed about the risks OPMs might pose to students and the powers schools are handing over to private contractors is concerning.

    READ More


  • Letters & Memos

    Advocates Call on the CFPB to Protect Borrowers from Predatory Practices by OPMs

    In a letter to the CFPB, the SBPC and Dr. Stephanie Hall of The Century Foundation call on the CFPB to protect borrowers from predatory practices by OPMs. A recent GAO report revealed that ED is failing to supervise the market.

    READ More


  • Blogs

    With ED Asleep at the Wheel, the CFPB Must Protect Students from Out-of-Control Online Program Managers

    We sent a letter to the CFPB calling on the agency to step in and protect students from predatory conduct by OPMs—something ED has proven unable or unwilling to do for more than a decade.

    READ More


  • Blogs

    A Predatory School is Dragging 290 Defrauded Students into Court in the Latest Example of the Exploitative State of the Income Share Agreement Market

    It is long past due for policymakers, regulators, law enforcement, and Congress to hold ISA providers and the bootcamps that rely on them accountable, and to protect borrowers from these predatory shams.

    READ More


  • Press Releases

    Income Share Agreement Company and For-Profit School Sued for Deceptive Practices and Illegal Lending

    Two former students, with the support of the SBPC, filed lawsuits against a predatory online bootcamp scheme and a nationwide provider of ISAs, alleging widespread deceptive practices, illegal lending, and unlawful collection of student loans.

    READ More


  • Blogs

    The Web of Players and Practices Allowing Predatory For-Profit Schools to Flourish

    For years, predatory for-profit schools have plagued the American higher education system, aggressively recruiting students into high-cost, low-quality education and training programs with false promises. As the abuses of this industry continue to come to light, the SBPC has launched investigations into the companies and practices that allow these schools to operate with impunity, raking […]

    READ More


  • Blogs

    For-Profit School Accountability

    States have the power to fight back against the abuses perpetrated by for-profit colleges. States can use their long-standing authorities to protect their residents from being swindled by this multi-billion dollar industry. Read below to see all of the ways states are holding the for-profit school industry accountable.

    READ More

EXPLORE MORE


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