U.S. Department of Education Office of Federal Student Aid Reaches Settlement with Baker College for Misrepresentations Made to Prospective Students

U.S. Department of Education

Press Release

January 7, 2025

The U.S. Department of Education (Department) today announced that its office of Federal Student Aid (FSA) reached a settlement agreement with Baker College (Baker), which includes a $2.5 million fine, due to violations of the Higher Education Act of 1965 (HEA) and related regulations. FSA determined through an investigation that the private, non-profit institution in Michigan made misrepresentations about its graduates’ job placement rates and potential salaries that could harm students relying on the college’s website and marketing materials. Among other misrepresentations, Baker falsely claimed that its graduates had significantly higher job placement rates and salaries than they actually did.

Nearly five years of substantial misrepresentation

FSA’s thorough investigation determined that, for several years, Baker published “career outcomes rates” on its websites that were both inaccurate and misleading. While these websites gave the impression that all of Baker’s graduates were included in the Career Outcomes Rates, they did not disclose how many students responded to the survey. The rates actually represented fewer than all of the graduates, leading students to believe that the career outcomes rates related to more graduates than they actually did. In addition, for several years, the institution also advertised via email that it had an overall career outcomes rate of about 91% and that its automotive program had a rate of nearly 96%, without defining what a “career outcome” meant in that email. These figures give the impression to prospective students that nearly all Baker graduates earned employment in a paid position. The institution did not explain in those emails that the “career outcomes rates” included unpaid options like continuing education.

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