The U.S. Department of Education has imposed a $2.5 million fine on Baker College in Michigan for years of misleading students about career outcomes and employment prospects after graduation.
An investigation by the Department's Office of Federal Student Aid uncovered multiple instances where Baker College published deceptive information, including inflated career placement rates and misleading salary data. The college advertised a 91% overall career outcomes rate without explaining how this figure was calculated.
The federal probe was sparked by a 2022 joint investigation by ProPublica and the Detroit Free Press that revealed the college's low graduation rates and high student debt levels. The investigation found that Baker College spent more on marketing than financial aid while promoting near-100% employment rates based on questionable self-reported data.
As part of the settlement, Baker College must:
- Stop making misrepresentations about student outcomes
- Submit marketing materials for federal review over three years
- Inform current students and staff about complaint procedures
Baker College President Jacqui Spicer maintains the institution did not commit misrepresentations, stating the issues centered on "insufficient background or explanation" in marketing materials rather than false information.
Former students expressed mixed reactions to the penalty. Dan Nowaczyk, a 2016 graduate, called it "a good step" but wished for more support for affected students. Another graduate, Bart Bechtel, who took on over $40,000 in loans for an online associate degree, viewed it as inadequate, saying "I still owe $5,000 remaining on a $16,000 loan because of those liars."
The college has faced declining enrollment and financial challenges in recent years. From a peak of 45,000 students in 2011-12, enrollment has dropped to about 4,000. Revenue fell from $219 million in 2013-14 to $58 million in 2022-23, while expenses reached $93 million.
The Department of Education's action reflects increased scrutiny of deceptive college marketing practices under the Biden administration. The settlement reinforces the department's commitment to protecting students and taxpayers from misleading recruitment tactics in higher education.