Higher Education: Stronger Federal Oversight Needed to Enforce Ban on Incentive Payments to School Recruiters

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A letter report issued by the Government Accountability Office with an abstract that begins "In 1992, Congress banned schools participating in federal student aid programs from paying commissions, bonuses, or other financial incentives to individuals based on their success in enrolling students or securing their financial aid. The ban applies to all postsecondary schools, including private for-profit, public, and private nonprofit schools. Congress instituted this incentive compensation ban to eliminate deceptive recruiting practices and to protect federal student aid funds from fraud and abuse. However, we recently found evidence of deceptive or fraudulent recruitment practices at certain postsecondary schools in ... continued below

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United States. Government Accountability Office. October 7, 2010.

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This report is part of the collection entitled: Government Accountability Office Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 12 times . More information about this report can be viewed below.

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Description

A letter report issued by the Government Accountability Office with an abstract that begins "In 1992, Congress banned schools participating in federal student aid programs from paying commissions, bonuses, or other financial incentives to individuals based on their success in enrolling students or securing their financial aid. The ban applies to all postsecondary schools, including private for-profit, public, and private nonprofit schools. Congress instituted this incentive compensation ban to eliminate deceptive recruiting practices and to protect federal student aid funds from fraud and abuse. However, we recently found evidence of deceptive or fraudulent recruitment practices at certain postsecondary schools in which school officials misrepresented programs or encouraged students to falsify their financial aid applications to obtain federal student aid. Questions have been raised about whether schools are consistently acting in the best interest of students during the recruitment process, and whether the federal investment in student aid is adequately protected. The U.S. Department of Education (Education) is responsible for monitoring schools participating in federal student aid programs and enforcing compliance with the incentive compensation ban. Education has the authority to assess fines or take other actions against schools found violating the ban. In the Higher Education Opportunity Act, Congress mandated that GAO conduct a study on Education's oversight of the incentive compensation ban. In February 2010, we issued a report which provided information on incentive compensation violations substantiated by Education from January 1998 through December 2009, the nature of these violations, and the names of the institutions involved. This report provides additional information on Education's oversight of the ban during this time period. Specifically, we examined (1) how Education monitors schools for potential violations of the incentive compensation ban, and (2) the extent to which Education has used its authority to enforce the incentive compensation ban."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • October 7, 2010

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  • June 12, 2014, 7:50 p.m.

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United States. Government Accountability Office. Higher Education: Stronger Federal Oversight Needed to Enforce Ban on Incentive Payments to School Recruiters, report, October 7, 2010; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc299866/: accessed August 20, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.