August 10, 2007
University Will Pay $5.3-Million to Settle Whistle-Blower's Lawsuit
Oakland City University, a nonprofit, liberal-arts college in Indiana, has agreed to pay $5.3-million to settle a whistle-blower's complaint that it offered improper incentives to student recruiters, according to a written statement issued last week by the university.
The Higher Education Act of 1965 prohibits such payments at colleges and universities that receive federal student aid. The ban is intended to prevent colleges from abusing the aid programs by signing up unqualified
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