(CBS DETROIT) – Baker College, which has five campuses in Michigan, is facing a $2.5 million fine as part of a settlement with the U.S. Department of Education.
Federal officials made the announcement Tuesday, citing violations of the Higher Education Act of 1965 and related federal requirements, and alleging misrepresentations about graduate job placement rates and potential salaries.
“Among other misrepresentations, Baker falsely claimed that its graduates had significantly higher job placement rates and salaries than they actually had,” the press release said.
Baker College, an independent, private, non-profit institutionoffers both online and in-person classes, with Michigan campuses in Cadillac, Jackson, Muskegon, Owosso and Royal Oak.
The Education Department said the Federal Student Aid Office investigation found that for nearly five years, Baker College published “career outcomes” on its websites that were “both inaccurate and misleading.”
Not all Baker graduates responded to the employment survey and are therefore not included in the data. Additionally, the institution provided unpaid options, such as continuing education as a “career outcome” option.
“The numbers give prospective students the impression that almost all Baker graduates are gainfully employed,” the news release said.
In another example, Baker posted on his website a list of companies where his graduates worked. The federal investigation found that 14 of the more than 100 publicly traded companies made the hires before the students enrolled at Baker, and therefore the eventual Baker degree had no impact on that career move.
Another claim is that Baker “misrepresented the earnings of its graduates,” using national data from the U.S. Department of Labor’s Bureau of Labor Statistics to show salaries – rather than earnings reported by its own graduates. This is contrary to the agency’s instructions to schools on publishing salary information.
In a statement, Dr. Jacqui Spicer, president and CEO of Baker College:
“The Department of Education has completed its investigation into Baker College’s marketing and recruitment data with a focus on career outcomes. The Board maintains that we made no misrepresentations and that the resolution agreement contains no admission of misconduct.
Notably, the DOE has not alleged that the College provided false information as part of our marketing and recruitment data. The DOE identified certain instances where, in the DOE’s opinion, our materials lacked sufficient background or explanation, creating the potential for a statement to be misinterpreted. Baker College is committed to continuous improvement and meets and exceeds DOE expectations and has already taken steps consistent with that commitment.
We cooperated fully and worked closely with the DOE throughout this process, and the investigation raised no other concerns. We believe the resolution allows us to move forward so we can focus on what matters most: providing supportive and innovative education that empowers students to improve their lives and make a difference in the world.”
