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Bogus "Obama Mum 'Grants Lure Students

After he moved from her job as a school teacher in Dayton, Ohio, decided to return Nicole Massey to college. For months, they on the Internet for ways to finance their tuition fees boiled, while the support of their 10-year-old son, Tyler. So if ads appeared in Massey claimed inbox that Barack Obama had created special offers hope college scholarships for single mothers, that their soared.

"You see his picture," Massey said, "so I clicked on it." The link took them in a new window where she was asked her name, age and other information about the degree would give her. The site then produces a list of schools that are lined with Massey decisions.

Almost immediately, recruiters from for-profit universities, including the University of Phoenix [3], Kaplan University [4], Grand Canyon University [5] and a couple of local schools, Massey bombarded with emails and phone calls.

"That's when I order the thing," What about the Obama credits? What about the money the single mothers in the attraction? "She said." And she would say: "Well, we'll call you back with further information about it."

You have never – and no wonder: "There is no such thing as Obama scholarship for mothers," said Robert Shireman, who was until earlier this month, Deputy . Secretary, U.S. Department of Education, "Moms are entitled to BAföG general – Pell Grants, student loans and other aid -. But nothing specific to mothers or single mothers "mom Nevertheless, the Obama ads have become" ubiquitous, "he said.

This is a Example of one of the "Obama mom 'ads.

For-profit universities and career colleges are thriving in the down economy, thanks to a gusher of taxpayers' money flowing into the Federal Government Pell Grant program [6] for economically needy students. Hundreds of thousands of Americans have been in community colleges, which are hard enrolled competition for new recruits.

For online marketers, that the contact to gather information from prospective students and sell them to schools: The grant money has fueled blessing to continue booming. Just a few years ago, fed this company known as lead generators, the subprime machine. Now they are earning more estimate of $ 1000000000 a year for the search for potential students, according to an industry.

Consumer advocates say that through the Parallels between the sub-prime mortgages and for-profit schools, which are also come under fire alarmed targeting low income groups and registration for students loans, let You can bury them in debt. Some schools receive nearly 90 percent of their revenue from federal student aid programs.

Single mothers, the critics say, are particularly vulnerable.

"Compared with a traditional 18-year-old college student, single mother faces a unique, often incomparable Obstacles to get education, "said Greg C. Frazier of Community Connections of Jacksonville [7], a group that works with disadvantaged women in Florida." Frequently they are lured by promises of low-cost, easy on-line courses that do not deliver in reality. "

Harris Miller, president of the Career College Association, said the 1,400-profit colleges, universities and professional schools, his organization represents property under misleading or false advertising for students to . recruit But Miller said lead generators are often a few steps from a sub-school recruiting operation, so that they are difficult to police.

Shireman, when you look at the ads, said the Education Department lacks authority, against the subcontractor. A spokeswoman for the Federal Trade Commission, which has such power, the so- called to say misleading ads, but was whether the agency examined it.

Vital market for Career Schools

(Source: U.S. Department of Education)

Mothers are an important market for the for-profit schools. Women represent 65 percent of their students and more than half have dependent children, according to the Career College Association. In many cases, the mothers return to school with a step up to a better job and provide improved conditions for their children.

But women who have responded to the ads said, ProPublica felt they were "targeted," "victims" and "insulted" when they discovered that Obama was not awarded.

If banner ads and pop-ups appeared in her Facebook profile and on the website Blackplanet.com, Lisa Jackson, a single mother from Washington, DC, have clicked on the links.

Jackson lost her job as a project manager in a furniture dealer in the past Years and spent much time online looking for ways to escape unemployment. She realized there was no Obama grants for single mothers to receive e-mails from several non-profit schools.

"I feel it's an insult to my intelligence to some degree," she said.

The use of Obama's name also troubled Jackson, who is African-Americans.

"Some of these advertisers in the sense that we played our first African American president, "she said, noting that Obama used the image and name, in order to encourage mortgage refinancing Minority neighborhoods. "It's sad. They have used it for the wrong reasons."

Priya Raghubir [8], a marketing professor at the Stern New York University School of Business, said it is no coincidence that marketers are recycling techniques of the subprime boom. Obama has a strong appeal to younger people, Minorities and low income households, she said. The same people were disproportionately targeted for subprime loans after [9] by the Department of Housing and Urban Development Research.

"For this particular group he is a figure, a celebrity who is very popular and also signals something that they would like to associate with – Educational as it was used to break through a series of barriers and where he has at such a young age, "said Raghubir.

Watchdog groups, Congress, the Education Department and some investors [10] have expressed concerns [11] (PDF) on the setting [12] to non-profit organizations schools. A recent published report [13] (PDF) from the College Board noted that more than half of students graduate with $ 30,500 non-profit organizations or more in debt – with about a quarter of private college graduates and 12 percent compared from the public schools.

Middlemen in the recruitment Game

Annual increase in the Pell Grant revenue by type of school. (Source: U.S. Department of Education)

Last year economic stimulus bill added 17000000000 $ for the government need-based Pell Grant program and signed an extension earlier this year of Obama is expected some 820,000 additional grant awards over a decade, after training, Foreign Ministry spokesman. The money rolled in during the fiscal year, which in Ended in June, and while the public, private and community schools all saw big gains in sales Pell Grant to increase the total to gains at the highest was – 70 percent more than last year.

The University of Phoenix – the largest non-profit school – took in more than $ 300,000 of Pell Grant 1000000000 alone in 2009-2010 Education Department data show. That's what Phoenix's parent company, the Apollo Group, issued on "sales and promotion" in 2009, according to company financial filings.

For-profits spend heavily on lead generation, typically some 20 to 30 percent of their ad and marketing budget, according Ampush Media, a San Francisco lead generation company. A research report prepared in February Ampush estimated that higher education leads a $ 1000000000 market and were told that the market "Expanding rapidly", while leading mortgage only "subdued growth". Had

Experian PLC, a company, consumer credit Reports and recommendations [14] operates, also lead-generation companies. The company used to be a video of a woman dancing energetically [15] in front of their computers to the people of a funnel their websites – LowerMyBills.com.

The site was an important source of leads for subprime lenders during the housing boom, according to market Sam Rogers Mortgage-industry analyst at the Center for Responsible Lending, a nonprofit that monitors the lending practices. (The Sandler Foundation, the most important Contributor to ProPublica, also provides significant financial support for the center.)

Experian uses the same video on another of their sites, ClassesUSA.com, which collects information to sell to universities [16]. Another ad for LowerMyBills.com has a buxom blonde dancing suggestively [17] the text, "New Housing Bill passed! $ 133,000 Mortgage for under $ 529/Month!" The same dance blonde [18] sometimes associated also ClassesUSA.com.

A third ad Experian is an animation of two young women walking side by side side [19], with a banner reading "Obama urges moms to go back to school."

Steve Krenzer, president of Experian Interactive Media declined to comment on why the Experian ads used on both subprime borrowers and students Target.

"This lure is an example of an icon of American financial sector unsuspecting consumers into borrowing prohibitively expensive that they can not afford and that the taxpayer may have to make amends, "said Barmak Nassirian, spokesman for the American Association of Collegiate Registrars and Admissions Officers, an industry group, whose members are also some non-profit schools.

ProPublica asked the two other major consumer credit reporting companies, Equifax and TransUnion, whether they had such advertising. TransUnion said it does not engage in direct-to-consumer lead generation. Equifax does not comment.

The most common indications are Pop-ups that show on the screen automatically. ProPublica also found examples of sites to which Obama called mom grants or loans, and provided links to Lead generators.

"Barack Obama has made a commitment to help mothers go back to school, while the government pays for them," said one [20]. "unemployed mothers to a college diploma from the comfort of your home to seize, without a dime for baby-sitting (sic)", las another [21].

Schools pay anywhere from a few dollars to $ 85 per lead, said Daniel Kim, president of a small New Jersey-based lead generation company called MyCS network. Although some non-profit schools run generators, the largest customer for the use of high-school lines are for nonprofit universities, according to Kim, who worked in the industry since 2004.

ProPublica contacted several lead-generators in conjunction with the Obama ads mom, but all either declined comment or did not come off again calls or emails. To determine which schools to buy these leads, we asked volunteers from the ProPublica reporting Network [22] to click on the links to reimburse you fill out the online forms and reporting.

Hana Shepherd, the New York City, received 10 calls and nine e-mails from Recruiters within one day of filling out a form. Susan Sawyers, also of New York City were the sites of e-mails.

Top Schools Pell Grant 10 for-profit schools with the highest Pell Grants
Turnover in the years 2009-2010. Complete list of all
Schools. [23] (Source: U.S. Department of Education) University of Phoenix Kaplan University $ 1042372700 $ 211,302,730 $ 207,064,910 DeVry University Ashford University $ 162,195,320 $ 92,495,763 Virginia College Strayer University Instituto de Banca y $ 88,078,568 $ 86,890,443 Comercio American Intercontinental
University of Colorado Technical University $ 83,139,589 $ 81,615,604 $ 64,597,004 Keiser University South University $ 54,436,122

The schools include Walden University, Kaplan University, Ashford University, American InterContinental University, Capella University, Colorado Technical University and the University of Phoenix – all for non-profit institutions.

Volunteers also received e-mails from two private non-profit universities: Golden Gate University and the University of Southern California Rossier School of Education. Jennifer Hanlon, director of marketing at 2tor, the company that manages online advertising Rossier School, she said surprised and disappointed to hear about the ad.

Part of the problem, Hanlon said, is that often lead generators farm work to subcontractors. "It's frustrating as a customer because you have a contract with a person, and a group of partners with whom they must work," she said. "You only a diligent provider and find out where you are to be seen, and if you see something on the shady side, you need to do your due diligence. "

A spokesman said school officials also Capella "messaging to check regularly" used by lead generators, and that it is Capella "participation" ended with several campaigns this year after discovering they were "paraphrase President Obama." A spokeswoman for Golden Gate University, said the school would "immediately" to stop by each of its lead generators, they should find the marketer mom with Obama ads. The other schools do not comment.

At our request, asked volunteers lead generators and college recruiters about Obama grants or scholarships for mothers. Although it claimed no recruiter the grants actually exist, they do not usually deny that they did. Often said Shepherd, "I was told that financial support Person could help me later when I asked about the grants Obama. "

A Regulatory Vacuum

In a round-table meeting in Northern Virginia this winter of Education Arne Duncan by a question from one of the participants was surprised.

"One of the students participating in a Discussion actually asked: "Is there an Obama scholarship for mothers Because I saw ads about?" Said Shireman, the deputy Duncan was.

Duncan had never heard of the ads, let alone an "Obama" scholarship for the mothers. But Shireman had. "I have seen the ad to stop me missing from my personal e-mail, "he said, describing them as" misleading. "Even the power department, advertising, Shireman said.

"We do not have a general regulatory issues in marketing," he said. "The Department of Education has no direct authority concerning other companies, provided that such third-party companies to work for the schools. "

The department recently published draft regulations that would strengthen its ability to crack down on misleading advertising, Shireman said. But the new rules apply only to schools or companies that work for them directly – and not subcontractors.

The Federal Trade Commission has jurisdiction over deceptive marketing, and is "actively searching for fraud, the Messages about how to use fiscal stimulus package, to falsely claim that the package includes money for government grants, home repair, to pay off debts, scholarships, "said Lois Greisman, director of agency marketing division.

But she canceled Greisman could not on whether the FTC is a specific company and could not find on any previous enforcement action, the mom to take the Obama ads point position. Blackplanet.com not respond to our request for comment and Yahoo declined to comment on ads on their pages.

Miller, the Career College Association president, said for-profit Schools have the tactic is contradicted by some lead-generators. In one case, he said, schools were amazed to discover that a generator was leading with the promise free meals or accommodation in order to attract people to enter their data. "No one thought was OK," he said.

Schools often operate with a primary lead generator and can demand that companies signed a contract to sign out of school supervision over ad copy. Miller said his group is encouraging schools, their own "mystery shoppers" hire police lead generators.

But Kim, the lead generator MyCS Network, said that all the misleading techniques to make the Industry, "look bad." They remain, he said, for one simple reason – they work.

"It's difficult because there are these big companies do it, "Kim said," and they get these results in the schools and the schools think that these lines are good. "

ProPublica Joe Kokenge contributed to this report.

Several of our readers are ProPublica Reporting Network reporter Sharona Coutts supports the identification Schools offer to buy. If you want help with their reporting ProPublica to join Our Reporting Network [24].

http://www.freeeducationguide.com/?campaign_id=12076&pid=46777-sfmi

http://www.buzzle.com/articles/federal-pell-grants-for-moms-backed-by-obama.html

http://ezinearticles.com/?Obama-Helps-Moms-Go-Back-to-School&id=2430990

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