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Postsecondary Registration: Limiting Diploma Mills Fiscal TOPICS Postsecondary Registration: Limiting Diploma Mills Fiscal TOPICS Published November 2008 Postsecondary Registration: Limiting Diploma Mills Chapter 261B, Code of Iowa seven representatives from two- and specialized accrediting associations. The (Registration of Postsecondary Schools) four-year public and private colleges U.S. Department of Education (USDE) does is intended to “provide protection for and universities and specialized not accredit colleges as is done by its persons choosing institutions and vocational schools and advises the ministry counterparts in many foreign programs by ensuring that accurate and Secretary of State in the countries. Instead, the USDE recognizes complete information about institutions administration of Chapter 261B. private, non-profit organizations to fulfill and programs is available to these • The Iowa Coordinating Council for this function. The Council for Higher persons and to the public.” The Post-High School Education is a 25- Education Accreditation (CHEA) is a postsecondary registration process member board made up of higher private, nonprofit national organization that regulates which institutions may offer education stakeholders. The Council coordinates accreditation and recognizes college courses and degrees within the provides voluntary cooperation and accrediting agencies in conjunction with the State. This is how Iowa limits the coordination among the various USDE. operation of diploma mills within the boards and institutions that are There are approximately 80 accrediting State. responsible for post-high school organizations in the United States that are “Diploma mills (or degree mills) are education in Iowa and advises the recognized by CHEA and/or the USDE. substandard or fraudulent ‘colleges’ College Student Aid Commission. These organizations accredit more than that offer degrees to students with little Institutions Not Required to Register 6,800 institutions and 18,000 programs. or no serious work. Some are simple Colleges and universities authorized There are four types of accrediting entities frauds: a mailbox to which people send by State law and other higher education and three of these accredit entire money in exchange for paper that institutions accredited by the North institutions (CHEA): purports to be a college degree. Others Central Association of Colleges and require some nominal work from the Secondary Schools accrediting agency student but do not require college-level before April 1, 1969, are exempt from course work that is normally required registering with the Secretary of State. More Information for a degree.” (Oregon Office of Degree Likewise, programs that do not call Authorization) Oregon Office of Degree Authorization themselves colleges, universities, or The following entities are involved in academies are not required to register. (ODA): the postsecondary registration process: For example, these would include: http://www.osac.state.or.us/oda/diploma_ employee training programs; labor mill.html • The Secretary of State is responsible union apprenticeships; avocational and for approving registration of recreational training; professional, Bear, John. “The $200 Million a Year postsecondary education institutions business or farming seminars; vendor Competitor You Didn’t Know You Had.” offering associate, bachelor, master, training for purchasers of their http://www.degree.net/html/diploma_mills or doctoral degrees and maintaining products; and religious instruction for .html a list of approved institutions. members of the religious organization. • The Iowa College Student Aid Council for Higher Education Commission reviews applications for Accreditation in the U. S. Accreditation (CHEA) postsecondary registration to insure The accreditation process is utilized http://www.chea.org/ they meet statutory criteria for to insure quality and legitimacy for quality and renders a decision within college and university programs and U. S. Department of Education. 180 days of the application’s filing. degrees, to facilitate transfer of credit, The Commission is required to to provide access to federal funds, and “Accreditation in the United States.” establish an advisory committee to to insure private-sector confidence in http://www.ed.gov/admins/finaid/accred/ make recommendations in this area. academic programs. • The State Advisory Committee for LSA Staff Contact: In the United States, accreditation of Postsecondary School Registration Dwayne Ferguson colleges is done by regional and consists of the Secretary of State and 515-281-6561 dwayne.ferguson@legis.state.ia.us Postsecondary Registration: Limiting Diploma Mills • Regional – There are six regional In the first case, the fraud is straight makes the use of an unaccredited degree by accreditation organizations around forward. The diploma mill operates a an individual a class B misdemeanor unless the country that review and accredit scam, and the consumer is genuinely resumes, business cards, letterhead, institutions. Most of the institutions fooled and does not receive value that advertisements, and other documentation accredited are both degree granting was promised. referencing the degree contain a statement and non-profit that the college does not have accreditation In the second, there is duplicity • recognized by the USDE and is not Faith-Based – Faith-based accreditors between the diploma mill and the authorized by the ODA. The Office of operate nationally and review “graduate” that in turn uses the Degree Authorization maintains a website religiously-affiliated or doctrinally- diploma mill credential to mislead an providing lists of accredited and authorized based institutions. All of the faith- employer or other members of the colleges and universities and of diploma based accredited institutions are public. Some diploma mills maintain a mills. degree-granting and non-profit telephone service to provide a institutions. All of the faith-based “graduate” with verification of the It is difficult to determine the revenues accredited institutions are degree- degree if an employer calls. received by diploma mills, but nationwide granting and non-profit. it has been estimated to be in excess of • Fraudulent degrees have costs. From Private Career – Private career $200.0 million annually, and a single a simple supply and demand perspec- accreditors operate throughout the profitable school could earn between $10.0 tive, to the extent that employees use country and review institutions. and $20.0 million. With degrees costing diploma mill degrees to compete with Approximately one-fourth are between $3,000 and $5,000, an estimated legitimate degree-holders, the value of degree-granting and nine-tenths are 40,000 to 67,000 diploma mill degrees are a college education is diluted. for-profit institutions. Many are awarded annually. Between 1.8% and 3.0% Employers rely on degrees to represent single-purpose institutions, such as, of the new degrees awarded annually could skill and achievement. Employees with business and information technology come from diploma mills. colleges. fake degrees may not have the skills necessary for the job, and their Diploma mills will sometimes register • Programmatic or Specialized – employers may become financially with the Secretary of State as a corporation, Programmatic/specialized accreditors liable for mistakes made by their although not necessarily with the state’s operate review programs in specific employees with fraudulent degrees. higher education regulatory agency, in subject areas and some single- Members of the public that rely on a order to appear legitimate. Seven purpose institutions. business consultant, an engineer, or a unaccredited colleges or universities listed Diploma Mills lawyer with a fake degree may suffer by ODA or CHEA have had a corporate Diploma mills often operate from losses from inappropriate advice. presence in Iowa. jurisdictions with weak laws or little Not all unaccredited schools are Unaccredited Universities Registered with enforcement. They use names that diploma mills. They may be new the Iowa Secretary of State sound legitimate or are similar to institutions seeking accreditation. They Filings with the legitimate colleges and universities. may be very poor quality and unable to University Sec. of State They rely heavily on credits for life 1st Yr. Last Yr. obtain accreditation. Even accredited Adam Smith University 1994 1998 experience. The Internet and institutions vary greatly in quality, but American Global University 1997 1997 development of online programs have accreditation does serve a gate-keeping American International University 1997 1997 made it easy for diploma mills to put up American University of London 1992 1994 function. American World University 1994 2007 websites and appear legitimate. Their Barrington University 1994 1996 institution and program descriptions Oversight and regulation of higher Pacific Coast University 1992 1998 use much the same terminology as bona education varies markedly from state to fide institutions. Diploma mills often state. Some states have high standards Most of these corporations were purchase “accreditation” from and strong regulation, while others administratively dissolved by the Secretary accreditation mills – equally fraudulent have lax standards or no enforcement of State for failure to file the required organizations that provide further capability. According to Oregon’s biennial reports. appearance of legitimacy. Office of Degree Authorization (ODA), “Idaho, Hawaii, Montana, Alabama,
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