Federal education department fines Michigan-based college over salary claims
(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, claiming misrepresentations about job placement rates for its graduates and potential salaries.
"Among other misrepresentations, Baker falsely claimed that its graduates had significantly higher job placement rates and salaries than they actually did," the press release said.
Baker College, an independent, private, nonprofit institution, offers both online and in-person classes, with its Michigan campuses in Cadillac, Jackson, Muskegon, Owosso and Royal Oak.
The education department said the investigation by the Federal Student Aid office determined that, for nearly five years, Baker College published "career outcome rates" on its websites that "were both inaccurate and misleading."
Not all Baker graduates responded to the employment survey and therefore were not included in the data. In addition, the institution included unpaid options such as continuing one's education as a "career outcome" option.
"The figures give the impression to prospective students that nearly all Baker graduates earned employment in a paid position," the press release said.
Another example is that Baker provided a list on its website of companies where its graduates were working. The federal investigation found that 14 of the more than 100 listed companies had made the hires before the students enrolled at Baker, and therefore the eventual Baker degree did not have an impact on that career step.
Another allegation is that Baker "misrepresented its graduates' earnings," using national data from the U.S. Department of Labor's Bureau of Labor Statistics to represent salaries – rather than income reported by its own graduates. This goes against instructions that the agency issued to schools on how to publish salary information.
In a statement, Baker College President and CEO Dr. Jacqui Spicer said:
"The Department of Education has concluded its investigation into Baker College's marketing and recruitment data with a focus on career outcomes. The College maintains that we did not commit any misrepresentations and the resolution agreement contains no admission of wrongdoing.
Notably, the DOE did not assert that the College provided false information, as part of our marketing and recruitment data. The DOE identified certain instances in which our materials had what the DOE viewed as insufficient background or explanation which presented the potential for a statement to be misinterpreted. Baker College is committed to continuous improvement and meeting and exceeding DOE's expectations and has already taken steps consistent with that commitment.
Throughout this process we have cooperated fully and worked closely with the DOE, and the investigation raised no other areas of concern. We believe the resolution enables us to move forward so we can focus on what matters most: offering a supportive and innovative education that empowers students to improve their lives and make a difference in the world."