Colleges commit fraud in admitting unqualified students, who then fail and default on student loans.
Some for-profit colleges have been caught rigging the admissions process by encouraging and even helping applicants cheat on admissions exams, then enrolling applicants into programs for which they are not qualified. This sets students up for failure and defrauds the government of federal tax dollars spent in providing financial aid to unqualified students.
School employees who witness such testing fraud can file False Claims Act lawsuits to help the government recover funds and put an end to these illegal practices. Under the qui tam provisions of the Act, a whistleblower is entitled to recover a percentage of the government’s recovery.