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Overview

For-profit colleges in California have been subject to significant enforcement actions for fraud, misrepresentation, and predatory practices. If you attended a for-profit college that made false promises about job placement, misrepresented its accreditation, or used deceptive recruitment tactics, you have powerful legal remedies under California and federal law.

Key Protection: Under California Education Code Section 94800 et seq. (the Private Postsecondary Education Act), schools must provide accurate, substantiated information about completion rates, job placement rates, and salary outcomes. False or misleading advertising is prohibited under Business & Professions Code Section 17200 (UCL).

Common forms of for-profit college fraud include:

  • Inflated or fabricated job placement statistics
  • False claims about program accreditation or credit transferability
  • Misleading salary projections for graduates
  • Pressure tactics and predatory recruitment targeting veterans and low-income students
  • Misrepresentation of program costs and financial aid availability
  • Failing to disclose school's financial instability or impending closure
Time-Sensitive: California fraud claims generally have a 4-year statute of limitations. Borrower Defense applications should be filed as soon as possible. STRF claims must be filed within 4 years of the qualifying event.
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Common Dispute Types

Select the type of fraud or misrepresentation that applies to your situation:

📈 Misrepresented Job Placement Rates

School advertised inflated employment statistics, counted unrelated jobs as "placements," or fabricated data to attract students. California Ed Code requires substantiated, accurate placement data.

📚 Non-Transferable Credits

School claimed credits would transfer to other institutions but they were rejected. Many for-profit credits are not accepted by accredited universities, costing students time and money.

📋 False Accreditation Claims

School misrepresented its accreditation status, claimed programmatic accreditation it lacked, or failed to disclose that its accreditation was not recognized by employers or licensing boards.

🎖 Predatory Veteran/Low-Income Targeting

School aggressively recruited veterans to access GI Bill benefits or targeted low-income students for federal financial aid without genuine regard for educational outcomes.

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California Legal Framework

California provides robust protections for students defrauded by for-profit colleges:

California Private Postsecondary Education Act (Ed Code 94800) ▾

This comprehensive law regulates private postsecondary institutions in California:

  • Section 94897: Prohibits untrue or misleading statements in advertising or representations to students
  • Section 94900: Requires disclosure of completion rates, job placement rates, and salary information
  • Section 94902: Mandates School Performance Fact Sheets with verifiable data
  • Section 94909: Requires written enrollment agreements with specific disclosures
  • Section 94920: Establishes refund requirements for withdrawn students
Bureau for Private Postsecondary Education (BPPE) ▾

The BPPE is California's regulatory agency for private colleges:

  • Approval Authority: Schools must be BPPE-approved to operate legally in California
  • Complaint Investigation: BPPE investigates student complaints and can impose penalties
  • Enforcement Powers: Can issue citations, fines, probation, or revoke approval
  • Student Protection: Administers the Student Tuition Recovery Fund (STRF)
  • Public Records: Maintains compliance history and complaint records on schools
Student Tuition Recovery Fund (STRF) ▾

STRF provides financial relief to qualifying California students:

  • Maximum Recovery: Up to $26,000 per student
  • Qualifying Events: School closure, fraud, severe violation of Ed Code
  • Eligibility: Must be California resident and have paid STRF assessment
  • Filing Deadline: Within 4 years of qualifying event or discovery
  • Economic Loss Required: Must demonstrate pecuniary loss from qualifying event
Borrower Defense to Repayment (Federal - 34 CFR 685.206) ▾

Federal protection for Direct Loan borrowers defrauded by schools:

  • Full Discharge: Eligible for 100% loan forgiveness if fraud proven
  • Partial Relief: May receive partial discharge based on harm suffered
  • Refunds: May recover payments already made on discharged loans
  • Standards: School must have made substantial misrepresentation you reasonably relied on
  • Group Discharge: Department of Education may grant relief to entire groups of students
California UCL (Bus & Prof Code 17200) ▾

California's Unfair Competition Law provides broad consumer protection:

  • Unlawful: Any practice that violates another law (like Ed Code)
  • Unfair: Practices that offend public policy or are immoral/unethical
  • Fraudulent: Conduct likely to deceive reasonable consumers
  • Remedies: Restitution of money obtained through unfair practices
  • Injunctive Relief: Court can order school to stop deceptive practices
False Job Placement Rate Claims ▾

Specific regulations govern job placement rate disclosures:

  • Ed Code 94910: Job placement rates must be based on graduates employed in field of training
  • Substantiation: Rates must be verifiable and documented
  • Methodology: Schools must follow BPPE-approved calculation methods
  • Fraud Indicators: Counting unrelated jobs, temporary positions, or self-employment
  • Salary Claims: Must reflect actual graduate earnings, not industry averages
Multi-Remedy Approach: These legal avenues can be pursued simultaneously. You can file a BPPE complaint, apply for Borrower Defense, seek STRF recovery, and pursue private litigation under the UCL - potentially recovering more than your original losses.
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Evidence Checklist

Gather this documentation to support your fraud claim:

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Enrollment Agreement

The contract you signed, including all disclosures, program costs, and representations

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Marketing Materials

Brochures, website screenshots, emails, and any materials showing job placement rates or salary claims

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School Performance Fact Sheet

Required disclosure document with completion and placement rates (compare to actual outcomes)

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Recruitment Communications

Emails, texts, call notes, and written promises made by admissions representatives

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Financial Records

Tuition payments, loan documents, financial aid award letters, and STRF fee receipts

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Credit Transfer Rejections

Documentation from other schools refusing to accept credits from the for-profit institution

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Employment Search Records

Job applications, rejection letters, and evidence that degree did not lead to promised employment

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News Articles and Government Actions

Media reports, BPPE enforcement actions, FTC complaints, or AG lawsuits against the school

Preservation Alert: Schools may close or destroy records. Download all online materials now, screenshot your student portal, and request official copies of all documents in writing.
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Potential Damages & Recovery

Students defrauded by for-profit colleges may recover multiple categories of damages:

Damage Type Description Potential Recovery
Full Tuition Refund Return of all tuition and fees paid to the school $10,000 - $100,000+
Loan Discharge (Borrower Defense) Federal student loan forgiveness plus refund of payments made Full loan balance + payments
STRF Recovery California fund for students harmed by school closure or fraud Up to $26,000
Lost Time/Income Compensation for time wasted and income foregone during enrollment Varies by circumstances
UCL Restitution Recovery under California Unfair Competition Law Full economic loss
Important: These remedies can be combined. For example, you could receive loan discharge through Borrower Defense AND recover out-of-pocket costs through STRF or litigation. Consult with an attorney to maximize your recovery.
Class Action Opportunities ▾

Many for-profit college fraud cases involve class actions:

  • Check if a class action already exists against your school
  • Major schools like ITT Tech, Corinthian, and others have had successful class actions
  • Class members may be entitled to automatic relief without individual action
  • An attorney can determine if joining or starting a class action is appropriate
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Sample Demand Letter

Use this template language for your demand letter. Customize based on your specific circumstances:

For-Profit College Fraud Demand Letter
[Your Name] [Your Address] [City, State ZIP] [Email] [Phone] [Date] SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED [School Name] [School Address] [City, State ZIP] Attn: General Counsel / President / Chief Operating Officer Re: Demand for Refund - Fraud and Misrepresentation Student Name: [Your Name] Student ID: [Your Student ID] Program: [Program Name] Enrollment Period: [Start Date] to [End Date] Dear Sir or Madam: I am writing to demand a full refund of all tuition and fees paid to [School Name] based on your institution's fraudulent and deceptive practices in violation of the California Private Postsecondary Education Act (Education Code Section 94800 et seq.), California Business & Professions Code Section 17200 (UCL), and federal consumer protection laws. FACTUAL BACKGROUND I enrolled in [School Name]'s [Program Name] on [date] based on representations made by your admissions staff and marketing materials. Specifically, I was told: 1. [Specific representation #1 - e.g., "The job placement rate for graduates is 90%"] 2. [Specific representation #2 - e.g., "Credits earned will transfer to accredited universities"] 3. [Specific representation #3 - e.g., "Graduates earn an average starting salary of $X"] 4. [Specific representation #4 - e.g., "The program is accredited by [agency]"] I reasonably relied on these representations in making my decision to enroll and incur significant debt. I paid total tuition and fees of $[amount] and borrowed $[amount] in federal student loans. FALSE AND MISLEADING REPRESENTATIONS These representations were false, misleading, or unsubstantiated: 1. Job Placement Rates: Your reported placement rates were inflated, included employment unrelated to training, or were fabricated. [Include specific facts if known, e.g., "FTC/BPPE investigations revealed your actual placement rate was only X%"] 2. Credit Transferability: When I attempted to transfer credits to [other school], they were rejected as non-transferable. [Number] schools have refused to accept these credits. 3. Salary/Employment Outcomes: The promised employment outcomes did not materialize. [Describe your actual employment situation] 4. Accreditation: [If applicable: The program lacked the accreditation necessary for licensure/employment in this field] VIOLATIONS OF LAW Your conduct violates: - California Education Code Section 94897: Prohibition on untrue or misleading statements - California Education Code Section 94900-94902: Failure to provide accurate completion and placement data - California Business & Professions Code Section 17200: Unfair, unlawful, and fraudulent business practices - Federal Trade Commission Act Section 5: Deceptive acts or practices in commerce - Higher Education Act: Misrepresentation to prospective students BPPE COMPLAINT AND BORROWER DEFENSE Please be advised that I have filed (or intend to file): - A complaint with the Bureau for Private Postsecondary Education (BPPE) - A Borrower Defense to Repayment application with the U.S. Department of Education - A claim with the Student Tuition Recovery Fund (STRF) DEMAND I demand the following within thirty (30) days of this letter: 1. Full refund of all tuition and fees paid: $[amount] 2. Written agreement to support my Borrower Defense application 3. Compensation for lost time and opportunity costs: $[amount] 4. Confirmation that no negative information will be reported to credit bureaus or collection agencies If this matter is not resolved satisfactorily, I will pursue all available legal remedies, including but not limited to: - Private litigation under California's UCL (Bus. & Prof. Code 17200) - Participation in or initiation of class action litigation - Reporting to the California Attorney General's Office - Reporting to the Federal Trade Commission PRESERVATION DEMAND You are hereby instructed to preserve all documents related to my enrollment, your marketing materials, job placement data, and communications with regulatory agencies. Destruction of evidence may result in adverse inferences and spoliation sanctions. Please respond in writing within thirty (30) days. Time is of the essence. Sincerely, _______________________ [Your Signature] [Your Printed Name] cc: Bureau for Private Postsecondary Education California Attorney General's Office [Your attorney, if applicable] Enclosures: - Enrollment Agreement - Marketing materials/screenshots - Financial records - [Other supporting documents]

🖩 For Profit College Fraud Damages Calculator

Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.

Actual money lost or spent
Additional losses caused by the issue

📈 Estimated Damages Breakdown

Direct Damages $0
Consequential Damages $0
Emotional Distress (Est.) $0
Statutory Penalties (Est.) $0
TOTAL ESTIMATED DAMAGES $0
Disclaimer: This calculator provides rough estimates for educational purposes only and does not constitute legal advice. Actual damages vary significantly based on specific facts, evidence strength, and many other factors. Consult with a qualified California attorney for an accurate case evaluation.
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Frequently Asked Questions

What is the California Private Postsecondary Education Act and how does it protect students? ▾

The California Private Postsecondary Education Act (Education Code Section 94800 et seq.) regulates private colleges and career schools in California. It requires schools to provide accurate information about graduation rates, job placement rates, and salary outcomes. Schools must be approved by the Bureau for Private Postsecondary Education (BPPE) and follow strict advertising guidelines. Violations can result in institutional sanctions and student remedies including tuition refunds.

How do I file a complaint against a for-profit college with the BPPE? ▾

To file a complaint with the Bureau for Private Postsecondary Education (BPPE), visit their website at bppe.ca.gov and complete the Student Complaint Form. Include documentation of misrepresentations, enrollment agreements, marketing materials, and any communications with the school. The BPPE investigates complaints and can take enforcement action including fines, probation, or closure. File within 2 years of the incident or discovery of the violation.

What is the Student Tuition Recovery Fund (STRF) and am I eligible? ▾

The Student Tuition Recovery Fund (STRF) is a California state fund that reimburses students who suffer economic loss due to school closure or fraud. You may be eligible for up to $26,000 if you were a California resident, paid STRF fees, and suffered loss due to school closure, fraud, or other qualifying violations. Claims must be filed within 4 years of the qualifying event. The fund is administered by the BPPE.

Can I get my federal student loans discharged for for-profit college fraud? ▾

Yes, through Borrower Defense to Repayment (34 CFR 685.206), you can apply for federal student loan discharge if your school engaged in fraud or misrepresentation. This includes false job placement rates, misleading accreditation claims, or deceptive recruitment. Apply through StudentAid.gov. If approved, your loans may be fully or partially discharged, and you may receive refunds of payments already made.

What damages can I recover in a California for-profit college fraud lawsuit? ▾

In California, you can potentially recover: full tuition refund, federal loan discharge through Borrower Defense, STRF recovery up to $26,000, actual damages for lost time and income, UCL (Business & Professions Code 17200) restitution, and in some cases attorney's fees. Class actions may also be available. The statute of limitations is generally 4 years for fraud claims under California law.

Were for-profit colleges targeting veterans and low-income students illegally? ▾

Many for-profit colleges engaged in predatory recruitment targeting veterans to access GI Bill benefits and low-income students to access federal financial aid. This violates the 90/10 rule, California Education Code requirements, and federal regulations. If you were targeted based on your veteran status or financial situation with false promises, you may have additional claims under consumer protection and civil rights laws.

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Next Steps

Take these steps to pursue your claim against a fraudulent for-profit college:

1. Gather and Preserve Evidence ▾

Immediately collect all documentation:

  • Screenshot your student portal and any online materials
  • Request official copies of your enrollment agreement and transcripts
  • Save all marketing emails and brochures
  • Document your job search attempts and rejections
  • Obtain credit transfer denial letters from other schools
2. File BPPE Complaint ▾

Submit a formal complaint to California's regulator:

  • Visit bppe.ca.gov/complaints to access the complaint form
  • Provide detailed description of misrepresentations
  • Attach supporting documentation
  • Request investigation and enforcement action
  • Ask about STRF eligibility during the process
3. Apply for Borrower Defense ▾

Seek federal student loan discharge:

  • Apply at StudentAid.gov/borrower-defense
  • Describe specific misrepresentations you relied upon
  • Explain how the school's fraud harmed you
  • Request forbearance on loans while application is pending
  • Check if your school is on the closed school discharge list
4. File STRF Claim ▾

Apply to California's Student Tuition Recovery Fund:

  • Confirm you paid STRF fees (check enrollment agreement)
  • Download STRF application from BPPE website
  • Document your economic loss
  • File within 4 years of qualifying event
  • Maximum recovery is $26,000
5. Send Demand Letter ▾

Formally demand refund from the school:

  • Use the sample letter above as a template
  • Send via certified mail with return receipt
  • Set a clear deadline (30 days is standard)
  • Copy relevant regulatory agencies
  • Keep copies of everything for your records
6. Consult an Attorney ▾

Consider legal representation for complex cases:

  • Many attorneys handle these cases on contingency
  • Check if class action exists against your school
  • Attorney can maximize recovery across all available remedies
  • Legal representation strengthens negotiating position
  • Statute of limitations is 4 years - don't delay
Pro Tip: Pursue multiple remedies simultaneously. File your BPPE complaint, Borrower Defense application, and STRF claim at the same time. This maximizes pressure on the school and increases your chances of full recovery.

Need Help With Your For-Profit College Fraud Claim?

Complex fraud cases may benefit from professional legal assistance. Many attorneys offer paid consultations for student fraud cases.

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