POSTED DATE March 16, 2022
AUTHOR Office of Enforcement
ELECTRONIC ANNOUNCEMENT ID GENERAL-22-14
SUBJECT FSA Enforcement Bulletin, March 2022 – Substantial Misrepresentations When Recruiting Servicemembers and Veteran
The U.S. Department of Education (Department) enforces the requirements of the Higher Education Act of 1965 (HEA) intended to curb deceptive recruitment and enrollment practices. The Department may engage in enforcement action if it determines that an eligible institution has engaged in substantial misrepresentation, as defined under 34 CFR Part 668, Subpart F. Enforcement measures may include limitation or termination of an institution’s participation in the Title IV programs. Substantial misrepresentations subject to this prohibition include those regarding the nature of an institution’s educational program, its financial charges, or the employability of its graduates.
The Department is monitoring complaints and borrower defense to repayment (borrower defense) applications from veterans, servicemembers, or their family members (i.e., military-connected students) who report that school personnel or representatives suggested during the enrollment process that their GI Bill® benefits would cover all of the costs of a degree, only to be told later that they would have to take out student loans to finish the program. Some of these students even report that student loans were taken out in their name without their knowledge.1