The Department of Education penalizes Michigan’s Baker College for misrepresenting career outcomes and salaries to prospective students, citing multiple violations.
Federal Investigation Uncovers Misleading Claims by Baker College
The U.S. Department of Education’s Office of Federal Student Aid (FSA) has fined Michigan-based Baker College $2.5 million for violations of the Higher Education Act of 1965. The settlement follows an FSA investigation that revealed years of deceptive practices, including inflated claims about graduate job placement rates and salaries. These misrepresentations were prominently featured in Baker’s marketing materials and on its website, misleading prospective students about their post-graduation prospects.
Five Years of Deceptive Career Outcome Rates
According to the investigation, Baker College repeatedly overstated its graduates’ success. The institution advertised a 91% career outcomes rate overall and a 96% rate for its automotive program, but failed to clarify what “career outcome” meant. Many students were unaware that these figures included unpaid roles such as continuing education. Additionally, the data reflected responses from only a subset of graduates, not the entire graduating class.
The investigation further revealed that Baker misrepresented employment connections by listing companies that hired individuals before they enrolled at Baker. This tactic created the illusion that a Baker degree influenced hiring decisions, when, in fact, it had no impact.
Exaggerated Salary Claims and Culinary Program Missteps
Baker College also overstated salary prospects for its graduates by using national averages from the U.S. Bureau of Labor Statistics instead of real data from its alumni. These misleading figures gave students a false sense of financial outcomes tied to Baker’s programs.
Moreover, Baker violated accreditation standards for its culinary programs by publishing employment rates inflated by 16 to 60 percentage points. The institution failed to accurately calculate and report this data, further contributing to its misleading practices.
Impact on Students and Accountability Measures
The Department of Education concluded that Baker College’s misrepresentations could significantly harm students who relied on false information when choosing their educational path. The $2.5 million fine is part of a broader settlement that includes commitments by Baker to:
- Cease making misrepresentations in marketing materials.
- Submit all promotional content to the FSA for review over the next three years.
- Notify current students and employees about the settlement and provide channels for reporting misconduct.
Protecting Students and Enforcing Compliance
This settlement is a key example of the Department of Education’s commitment to holding institutions accountable for deceptive practices. In recent years, the Department has increased its enforcement efforts to ensure schools comply with federal regulations and provide transparent information to students.
In September 2024, FSA issued an enforcement bulletin warning schools about practices that could lead to violations. This included using generic salary data, comparing placement rates to peer institutions without evidence, and implying that degrees lead to licenses in non-licensed fields. Institutions were also cautioned against restricting access to cost-of-attendance information.
A Wake-Up Call for Institutions Nationwide
Baker College’s settlement serves as a stark warning to other educational institutions. Schools that fail to provide accurate information or comply with federal regulations risk significant penalties and damage to their reputation. Students and taxpayers alike benefit from stronger oversight and enforcement.
For more information about the Department’s enforcement and oversight efforts, visit StudentAid.gov.
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