WASHINGTON, D.C. — North Greenville University (NGU) has agreed to pay $2.5 million to settle allegations by the federal government that the South Carolina college submitted false claims to the U.S. Department of Education.
According to the U.S. Department of Justice (DOJ), NGU violated Title IV of the Higher Education Act (HEA) which prohibits higher education institutions receiving federal student aid from offering commissions, bonuses or other incentives to student recruiters.
“Offering unlawful financial incentives for recruiting undermines the integrity of our higher education system,” DOJ Civil Division assistant attorney general Jody Hunt said in a statement. “Prospective students are entitled to make enrollment decisions without the improper influence of recruiting companies who pursue their own financial gain at the expense of the students’ best interests.”
“This settlement will help ensure that schools and recruitment services put the educational interests of students and potential enrollees first,” added U.S. Attorney for the District of South Carolina Sherri Lydon. “It should serve as a warning to institutions that would attempt to maximize enrollments to line their own pockets, disregarding the best interests of students in the process."
The allegations against NGU stem from a whistleblower lawsuit saying NGU hired a company partially owned by the school to recruit students and paid compensation based on students enrolled, the department said.