The New York Institute of Technology and Cardean Learning, a for-profit online education company, will have to pay back $4 million for orchestrating a scheme to suck federal funds out of unsuspecting students, according to court documents obtained by the Voice.
NYIT, a not-for-profit college with a 14,000-plus student body, contracted with Cardean in 2003 to allow students at an online-based school, Ellis College, to receive federal loan and grant aid through NYIT's partnership with the U.S. Department of Education. In exchange for enabling Cardean to tap into those federal funds, NYIT received a cut of the college's revenue, documents say.
We reported in August on the mega bucks that for-profit institutions rake in while preying on the emotions and naivety of those with aspirations of attending college. NYIT and Cardean Learning jumped into the fray with the rest of the vulture-like institutions by syphoning funds out of individuals eligible for thousands of dollars in federal loans and grants.More »