Pain Points Recruiting: A For-Profit Scheme to Dupe Students

For-profit Colleges have been going for a beating in the press and been the topic of multiple lawsuits brought by the Consumer Financial Protection Bureau. ?Among the chief complaints about these schools is that they mislead students into paying for an overpriced education with a low graduation rate and terrible employment prospects.

One of the very most egregious ways of recruiting students is really a tactic commonly called “Pain Points Recruiting”. ?Within the words of one Kaplan University Recruiting Document:

Similarly, an ITT Technical Document read:

Not only did these sales pitches concentrate on people’s innermost pain and fear, however they were targeted at specific individuals. ?Vatterott College documents show the following among their student profiles:

  • Welfare Mom with Kids
  • College Freshman Dropout
  • Pregnant Ladies
  • Recent Divorce
  • Low Self-Esteem
  • Experienced a Recent Death
  • Physically/Mentally Abused
  • Recent Incarceration
  • Drug Rehabilitation
  • Living with Parents
  • Fired or Lay Off

The same Vatterott documents will continue to explain that:

What does all this mean?

These documents were made public as part of a Senate Floor Speech?this year. ?Even when these practices happen to be discontinued entirely, the truth is these were company policy at some point in time. ?Students were recruited with such tactics. Student education loans were taken out by individuals who were recruited using these tactics.

The circumstances that cause the loans being generated ought to be a key consideration in addressing a student loan crisis. ?It might be nice to state, for the purpose of the discussion, that students just made poor financial decisions or that they were the victims of fraud. ?However, in reality, there is lots of blame to go around. ?Before anyone attempts to point the finger at the individual who “signed the contract,” it is usually worth taking a look at why and how these were convinced to do so.

For further reading on Pain Points Recruiting and the methods employed by some for profits, make sure to check out these documents.