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Inducements and Referrals

Offering an inducement to a student or prospective student to get a referral is a compliance violation. Why is it inappropriate to offer inducements to students or prospective students?

I feel like that would be bribing the student to enrolling

Schools want students to enroll because the school is the right fit for them. If the school is the right fit for the student then he/she will only have postive information to share to others and will most likely graduate. An inducement may get a student in the door for an enrollment but usually the student is quick to leave which will result in various negative consquences for the school.

It is inappropriate to offer inducements to any student, prospective or continuing, for a few reason:

Students brought in on inducement referrals may not be satisfied with the education as it may have not been the correct fit.
It can attribute to negative retention rates for the school.
It can effect the loan default rate for the school.

It's a domino effect to offer inducements.

I believe students should start a school because they feel they could see themselves making it a career and they have passion for it. I think when schools try to offer them something they take it because of the gift and the reason why to they start is a little distorted.

I think when offered a inducement students may start for the worng reason or they may feel obligated to start because they don't want to miss out. I feel that their purpose for starting may be a little contaminated

Allison,

Agreed. Even though an incentive may not be much it still represents a gift for starting school. Students must make their academic choices based on the academic principles of the school.

Cindy Bryant

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