Baker maintains that it didn’t make any misrepresentations. Its deal with the department contains no admission of wrongdoing.
- The Education Department viewed Baker’s materials as containing “insufficient background or explanation,” President Jacqui Spicer said in a statement.
“This settlement demonstrates the department’s ongoing commitment to enforcing higher education laws and regulations and protecting students and taxpayers,” the department said in its announcement.
Former students were unimpressed. The announcement didn’t mention any restitution for former students who borrowed money or struggled to find jobs, they noted.
- “This seems like a slap on the wrist,” said one graduate of Baker’s Flint campus.
- “I am honestly shocked they are allowed to remain open and accredited,” said Bart Bechtel, a former student.
To be sure, Baker’s operating budgets have taken a hit, The Chronicle, Detroit Free Press, and ProPublica found in 2023. Revenue had dropped by a whopping $161 million over nine years to just $58 million. Enrollment plunged from a high of 45,000 students in 2011-12 to about 4,000.
But the college had built an endowment worth $362 million as of 2023. Cleamon Moorer Jr., a former administrator and faculty member, wondered how much punishment the fine of $2.5 million amounts to.
The bigger picture: The fine represents a last hurrah for the Biden administration, which promised to draw a hard line against deceptive college advertising and reminded colleges last year to be up-front with students. The incoming Trump administration isn’t expected to share that priority.
📱 Read the full story: Feds Fine Baker College $2.5 Million for Deceptive Marketing That Left Students With Debt and Regret