The U.S. Department of Education has imposed a $2.5 million penalty on Baker College for allegedly inflating statistics about its graduates’ employment and salaries. This decision follows a comprehensive investigation by the department, which revealed discrepancies in the college’s claims regarding graduate success.
With an enrollment of 4,000 students across its five Michigan campuses, Baker College offers business administration as its most popular program, according to the department’s college scorecard.
The college’s graduation rate within eight years stands at just 24%. A 2022 inquiry by both the Detroit Free Press and ProPublica highlighted that students often incur more debt than necessary for their education.
Emails sent as part of the college’s marketing strategy claimed a 91% success rate in career outcomes, yet failed to define “career outcomes.” Some of these outcomes turned out to be unpaid positions, as found by the department.
Furthermore, the college’s website used salary figures from the Bureau of Labor Statistics, misleadingly implying they were specific to Baker College graduates.
In response, Baker College has stated, “The College maintains that we did not commit any misrepresentations and the resolution agreement contains no admission of wrongdoing.” They emphasized their commitment to continuous improvement and meeting the Education Department’s standards.
As part of the settlement, Baker College must submit all marketing content to the Department of Education for approval over the next three years. Additionally, they are required to inform current students and staff about how to report any misconduct to the department.
