Looking to dodge massive loan bills for degrees that amount to little more than a pricey receipt? The 10 outrageous u list is your cheat sheet for steering clear of for‑profit institutions that have left countless students with empty wallets and broken dreams. In the United States, your safest bet is a regionally accredited post‑secondary school – stay far away from the glitter of national accreditation or, worse, any school that can’t claim accreditation at all.
Why 10 Outrageous U Schools Matter
These ten schools illustrate just how far the for‑profit model can go off the rails, from high‑pressure recruitment tactics to outright fraud. Many of the victims have since secured federal loan forgiveness, but the damage done to their finances and confidence is a cautionary tale worth sharing.
10 The Brown Mackie College
In a November 16, 2015 press release, the U.S. Department of Justice highlighted its role in a $95.5 million settlement against Education Management Corporation (EMC). The deal resolved four separate False Claims Act accusations filed in federal courts in Pittsburgh, Pennsylvania, and Nashville, Tennessee. One allegation described recruiters working in a “high‑pressure boiler room” who were compensated solely based on the number of students they enrolled.
Brown Mackie College, one of many EMC‑owned campuses, offered bachelor’s, associate, and certificate programs across a broad spectrum. Its original campus earned approval from the Accrediting Council for Independent Colleges and Schools – an agency that later lost its authority after the BMC controversy – and it was licensed by the Kansas Board of Regents to confer associate degrees. Yet, despite its nationwide presence, the school suffered steep enrollment declines, leading to the shuttering of numerous campuses.
9 International Academy of Design and Technology
Amanda Luciano’s story puts a human face on the devastation wrought by the International Academy of Design and Technology. She borrowed $51,000, repaid $40,000, and still found herself owing $81,000. How could that happen?
Following the advice of a school recruiter, Luciano took a loan from a private lender instead of a federal program, as reported by Meredith Kolodner. Her $500‑a‑month payments barely covered interest, and because the loan’s rate was variable, it fluctuated over the years, causing her balance to balloon. She now realizes the school was part of a predatory scheme.
In a settlement covering 150 for‑profit colleges, a federal judge ruled that students were entitled to automatic cancellation of their government‑backed loans due to institutional misconduct. Since Luciano’s loan was privately financed, the settlement didn’t apply, leaving her to shoulder a debt she describes as one she’ll “never be rid of.”
8 ITT Technical Institute
At its height, ITT Technical Institute operated 138 campuses across 39 states. By December 2015, ITT Educational Services had spent roughly $12.9 million in settlements, legal fees, and administrative costs. A local Milwaukee TV station, TMJ4, discovered a student who, when answering a forensic‑computer assignment, earned full credit for simply listing pros and cons.
The instructor praised the work, noting, “Excellent job. You were able to generate the required number of points and counterpoints for each issue.” The student’s actual response was a noodle recipe: “Ingredients: 1 ½ cups of all‑purpose flour, one pinch salt, two eggs beaten.” TMJ4 reporter Aaron Diamant confirmed the quirky submission, saying, “Yup, a noodle recipe.”
ITT Technical Institute also faced a massive $6 billion settlement that forced the cancellation of loans for 200,000 students after the U.S. Supreme Court refused to block the debt‑relief measure, citing “substantial misconduct.”
7 Brightwood College
Brightwood College, formerly known as Kaplan College and run by Education Corporation of America, provided programs in health, criminal justice, and trades. The U.S. Government Accountability Office uncovered that all 15 schools tested, including Brightwood, made “deceptive or otherwise questionable statements” to undercover GAO applicants. Admissions staff were even caught on tape making misleading claims.
As a result, Brightwood College students’ loans were wiped out alongside those of other defrauded students from similar for‑profit institutions.
6 Corinthian Colleges, Inc.
At its peak, Corinthian Colleges, Inc. operated more than 100 campuses throughout the United States and Canada, offering courses in health care, business, criminal justice, transportation technology, construction trades, and information technology.
Investigations in both Canada and the U.S. led Ontario to suspend Everest College’s operating license and close the corporation’s 14 Canadian campuses. The company eventually declared bankruptcy after shuttering its U.S. locations.
A Washington Post report noted that “allegations that Corinthian lied about the success of its programs and trapped students in predatory loans ultimately led to a series of government lawsuits and loss of its access to federal funding.” The U.S. Department of Education canceled $5.8 billion in federal student loans for 560,000 students who attended schools affiliated with Corinthian Colleges.
5 Le Cordon Bleu
The Las Vegas Review‑Journal highlighted that Career Education Corporation’s Le Cordon Bleu faced a five‑year investigation revealing that the corporation pressured employees to enroll students and engaged in unfair, deceptive practices – claims the company denied. Le Cordon Bleu closed its doors in 2016. Depending on when students attended, they could have qualified for debt forgiveness.
Relief was available through six distinct programs, provided applicants met the specific criteria. The Borrower Defense to Repayment program, for instance, allowed full or partial forgiveness for graduates who could demonstrate that Le Cordon Bleu misled them about job placement rates, accreditation, or other crucial aspects of their education.
4 DeVry University
The U.S. Federal Trade Commission found that DeVry University’s claims—that its graduates were more likely to secure jobs quickly and earn higher salaries than peers from other institutions—were deceptive. Consequently, the FTC mailed payments to harmed DeVry students. The first checks were dispatched in July 2017, and the total amount eventually reached an astounding $49 million. Some recipients never cashed their initial payments, prompting the FTC to send an additional 5,942 checks.
These checks represented each student’s share of the settlement between the FTC and DeVry University. While the settlement provided direct relief, it did not preclude recipients from pursuing additional remedies under federal or state law.
3 The Art Institutes
The Art Institutes, once a nationwide network of campuses, closed its final location in 2023 after being accused of fraud. The U.S. Department of Education reported that the schools lured students with “pervasive lies.” President Joe Biden stated that the institution “falsified data, knowingly misled students, and cheated borrowers into taking on mountains of debt without promising career prospects.”
The Department of Education subsequently erased loans for 317,000 students who attended the school between January 1, 2004, and October 16, 2017, at a cost of nearly $160 billion, which included $28.7 billion in loans already canceled.
This massive payback likely stemmed in part from a $95.5 million settlement between the Art Institutes and the Department of Justice in 2015, with the remainder funded by other settlements and loan‑cancellation programs targeting for‑profit schools.
2 The Famous Writers School
Fraudulent and misleading practices among for‑profit schools are not a new phenomenon. Investigative journalist Jessica Mitford’s scathing 1970 exposé of The Famous Writers School revealed that the organization siphoned tuition from enrollees while delivering little to no educational value.
Abigail Deutsch recounted Mitford’s interview technique—starting with innocuous questions that gradually turned more probing, coaxing subjects into self‑incriminating statements. The school claimed to offer “access to renowned authors,” yet publisher Bennett Cerf admitted he was too busy to review the aptitude tests prospective students submitted.
Poet Phyllis McGinley confessed she was merely a figurehead who never saw any applications or lessons. Mitford ultimately uncovered that teachers were sending students “cleverly camouflaged form letters,” underscoring the sheer emptiness of the program.
1 Trump University
David Whitman observed that the scandal surrounding The Famous Writers School bore striking similarities to the “trials of Trump University.” Donald Trump promised to share the secrets of his real‑estate success with those who enrolled in his venture.
Enrollment involved two steps: first, signing up for a $1,500 three‑day seminar after attending a free three‑hour introductory session; second, during the three‑day seminar, agreeing to a $35,000 mentorship program. While over 80,000 people attended the free seminar, only 6,698 proceeded to the paid events.
Attendees were told they would join a “family” with a hotline for advice and access to lenders willing to advance “investment money” for house‑flipping. Some were assured they could recoup their investment within two months. Although most surveys were positive, a few participants complained that Trump failed to provide ongoing mentorship after the seminar and that the cost was excessive. The New York Attorney General alleged Trump earned $5 million from the venture.
Ultimately, Trump agreed to settle the fraud cases in New York and California for $25 million—$21 million to reimburse parties in two California class‑action suits, $3 million for others not covered by those suits, and $1 million as a penalty for violating New York education law by operating an unlicensed university. While Trump denied wrongdoing, his organization claimed the settlement was “part of moving forward” as he prepared to assume the presidency.