The plundering was not one sided, many of the students were taking advantage of the government loan programs and never completing any course work. It was a scam, but most of the money went to the students, not the school.
The school prohibited the “enrollment councillors” from making any judgement of the seriousness or qualifications of the students who applied. They were told that they and the school would be sued a racists if they discouraged people from applying. So, they signed up anyone who wanted to apply and turned them over the financial services division, which helped them apply for student loans. When the money came through, it was tuition for a whole year, minus the funds for the first term, which went directly to the school. The students pocketed the money and never even finished the first term. No one cared.
Sometimes, it was worse than that. There were people who would sign up whole group homes full of students and apply for government loans, which would be mailed to the guy who was “helping “ them file for the financial aid. He would pay the students a small amount for co-operating and keep the rest of the money for himself. Next year, he would move to another area and sign up more group homes.
” So, they signed up anyone who wanted to apply and turned them over the financial services division, which helped them apply for student loans. When the money came through, it was tuition for a whole year, minus the funds for the first term, which went directly to the school. The students pocketed the money and never even finished the first term. No one cared.”
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That’s how the scam works even here in L.A. I’m close to most Hollywood film and media schools and these clowns if you saw them, will never be responsible enough to pay for the classes by themselves. My buds work as administrators for 2 of them, and the unemployment rate is staggering right after graduation. How can you, as a student be scared of the tuition when financial aid picks up most of the tab, at tax-payer’s expense?