North Greenville University ordered to pay $2.5 million over recruitment efforts

North Greenville University has been ordered to pay $2.5 million to resolve allegations that it violated a federal ban on incentive-based compensation, the Justice Department announced this week.

Any college receiving federal student aid is barred from compensating student recruiters with commission, a bonus or other incentives based on the recruiters' success in securing student enrollment, the Justice Department said.

The $2.5 million settlement resolves allegations that North Greenville University hired Joined Inc., a company partially owned by the university, to recruit students between 2014 and 2016 and that Joined was compensated based on the number of students who enrolled in NGU programs.

"The incentive compensation ban protects students against aggressive admissions and recruitment practices that serve the financial interests of the recruiter, rather than the educational needs of the student," the Department said in a release.

Read more: https://www.greenvilleonline.com/story/news/2019/02/13/justice-department-orders-north-greenville-university-pay-2-5-million/2863017002/