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    University Use of “Agents” Back in the News with $78 Million Fine

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    by Mark H. Sklarow, Executive Director, IECA

    I have spoken and written several times regarding the issue of international recruiters or agents. Such agents are used by colleges to find students overseas, paying the agent a per-head fee once the student enrolls. The practice has long been criticized on several fronts. Such agents typically conceal their business relationship from students and families. They pose as consultants, promising students to help them find a good college match and assist with applications. They never tell the family the truth: that they only refer students to one of the handful of colleges that pay them the bounty they demand. Colleges have begun to discover the downside as well: such students arrive on campus often without the skills necessary to succeed. Because the agent is only paid once a student enrolls, there is too much gamesmanship in the process that ensures students are registered, but all too often flunk out.

    In a recent blog I noted that paying agents on a per-head basis is so clearly improper that it is actually illegal for colleges to have such a business relationship domestically. The Higher Education Act contains a provision that bars colleges from providing incentive compensation. While the law has not yet kept up internationally, I suspect it is just a matter of time before such actions are illegal everywhere. Even if not illegal, such methods of filling dorm beds have proven to be illusory as students drop out and return home.

    Last week, in a historic decision, the University of Phoenix agreed to settle a case in which admission representatives claimed they were paid based on how many students they enrolled, a violation of the Higher Education Act. The settlement of more than $78 million dollars against the university demonstrates yet again that such behavior is simply wrong. While this was a domestic case, it is a reminder that scores of colleges engage in this same practice internationally. IECA believes strongly that colleges will be better served, and root themselves more firmly on ethical ground, by ending the practice of supporting fee-for-student agents.

    Luckily, there are a growing number of independent educational consultants throughout the United States and the world. Affiliating with Independent Educational Consultants Association ensures families—and colleges—that these are educated, ethical professionals who do not accept any payment from colleges or schools, and who pledge to always put the students’ interests first.

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