Capella University - University of California, Irvine
Kickback Scam Exposed!
It is with tremendous pleasure for us to announce that the national news media has now picked up on the story regarding the kickback scam in which Capella University has been paying the University of California, Irvine $500 per student that transfers into Capella's programs! The Chronicle of Higher Education has published (September 28, 2007) an article entitled, "University of California Campus Benefits From Referring Students to a For-Profit College." While the full article is currently only available to those with subscriptions to the Chronicle, some highlights include:
- "The U.S. Education Department considers such arrangements legal. But critics are not so sure, saying the payments appear to violate the spirit, if not the letter, of a general federal ban on per-student recruitment incentives. "
- "While setting up the relationship, Gary W. Matkin, dean of continuing education at Irvine, wrote an e-mail message in September 2002 to Capella's president, Michael J. Offerman, to tell him that Capella's "lawyers still have problems with our marketing arrangement, even though we have been careful not to talk about per-student arrangements."
- Not surprisingly, officials from both UCI and Capella University "declined to say whether their universities were involved in similar practices with other institutions. "
- U.S. Rep. Thomas E. Pet ri, a Wisconsin Republican and former vice chairman of the House of Representatives education committee, states that, "Colleges should accept students 'based on academic merit -- not on a college's financial gain,' . . .and students should be made aware of any fees exchanged. "
Visitors are encouraged to view the full article on the Chronicle of Higher Education's web site. We'll be posting more on this unfolding story in the very near future. |
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