Ibrahim Gardner
Students enrolling in colleges or universities are often required to sign enrollment contracts, which are formal, legalistic agreements that outline the rights and obligations of both the student and the institution. While these contracts are not common in traditional higher education, some schools have started using them to protect their financial interests and limit their liability in the event of disputes. These contracts may include arbitration clauses, restrictive clauses, or other legalistic small print that can reduce the student's legal rights and make it difficult for them to seek redress if they feel the university has wronged them. The use of such contracts has raised concerns about the balance of power between educational institutions and students, with some arguing that they take advantage of students' optimism and trust in the system.
| Characteristics | Values |
|---|---|
| Purpose | Protecting the financial interests of the school by limiting a student's legal rights |
| Content | Language that spells out the options a student has in a range of situations |
| Format | Formal, legalistic agreements |
| Length | Between one sentence and twelve pages |
| Examples | Kaplan University, South University, Paul Mitchell the School, National University |
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What You'll Learn
Student enrolment contracts limit students' rights
Students enrolling in colleges are often required to sign contracts that limit their rights. These contracts are formal, legalistic agreements that outline the options available to the student in a range of situations. While this practice is not common in traditional higher education, it is becoming increasingly common for schools to include legalistic fine print in their enrolment contracts to reduce the chances of any wrongdoing being addressed.
The language used in these contracts is specifically designed to protect the financial interests of the school and limit the student's legal rights if any issues arise. The restrictions imposed on incoming students by these contracts can be categorised into four types: forced arbitration clauses, go-it-alone clauses, gag clauses, and internal process requirements. Forced arbitration clauses, for example, require students to resolve any disputes through arbitration rather than going to court. This is particularly common among for-profit colleges that receive federal funding, with 93 out of 158 institutions in one sample including such clauses in their contracts.
Some schools also include multiple paragraphs of dense legal text in their enrolment contracts. For instance, South University includes multiple paragraphs, including a fully capitalized paragraph, within its twelve-page contract. Paul Mitchell the School, a cosmetology school, has a ten-page contract with a full page dedicated to arbitration, requiring students to initial each of the ten separate statements.
The use of enrolment contracts that limit students' rights has raised concerns about the integrity and accreditation of these institutions. It is argued that colleges take advantage of students' optimism and enthusiasm for their future, requiring them to sign away their rights at a vulnerable moment. There are calls for the U.S. Department of Education to prohibit the use of pre-dispute arbitration requirements and class-action bans in enrolment contracts for institutions receiving federal aid. Additionally, it is suggested that accrediting agencies should consider the presence of restrictive clauses in enrolment contracts as an indicator of an institution's lack of integrity.
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Colleges use contracts to protect their financial interests
Enrollment contracts are formal, legalistic agreements that students are required to sign during the college admission process. These contracts are designed to protect the college's financial interests by limiting the student's legal rights if something goes wrong. While such contracts are not common in traditional higher education, they are frequently imposed by for-profit colleges that participate in federal financial aid programs. The contracts contain restrictive clauses that fall into four categories: forced arbitration, go-it-alone, gag clauses, and internal process requirements.
Forced arbitration clauses require students to resolve any disputes through arbitration rather than going to court. This can be a single sentence or multiple paragraphs in the contract, and students may be required to initial each separate statement. Go-it-alone clauses prevent students from joining class-action lawsuits against the college. Gag clauses prohibit students from speaking negatively about the college, while internal process requirements mandate that students follow specific procedures when seeking redress for their grievances.
Some colleges also include restrictive clauses that allow them to engage in unscrupulous marketing and provide a lower quality of education. For example, National University requires students to agree that they have not been promised anything other than what is contained in the agreement. This could allow the university to disregard any claims that its advertisements or recruiters were misleading.
Critics argue that colleges should remove these restrictive clauses from their enrollment contracts and that accrediting agencies should consider the presence of such clauses as an indicator that the institution lacks the integrity to be accredited. The U.S. Department of Education has been urged to prohibit the use of pre-dispute arbitration requirements and class-action bans in enrollment contracts for institutions receiving federal aid.
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Predatory schools use contracts to exploit students
Students enrolling in colleges are often required to sign enrollment contracts. While this is not a common practice in traditional higher education, some schools have taken advantage of this moment to require students to sign away their rights. These contracts are formal, legalistic agreements that include language that limits a student's legal rights and restricts the ways in which students and former students can seek redress of grievances against these institutions.
Predatory schools use such contracts to exploit students. For example, National University, a non-profit institution, requires enrolling students to "specifically represent and warrant that...you have not been promised anything other than what is contained in this agreement or in the Catalog." If a student were to complain about misleading advertisements or recruiters' assertions, the school could point to this clause and disregard any promises made before the contract was signed.
For-profit schools have also been criticised for their predatory practices, particularly in targeting communities of colour. Schools like Corinthian College and Ashford University have engaged in deceptive marketing, false statements about job placement rates, and unlawful debt collection practices. They prey with the "promise of immediate employment" and saddle students with enormous debt.
Additionally, public colleges and universities have been accused of driving students towards expensive, predatory student debt. Firms hired by these institutions use false claims and aggressive sales tactics to recruit low-income students, students of colour, and military-connected students.
To protect students, organisations like the Project on Predatory Student Lending (PPSL) provide legal representation against predatory for-profit colleges. Legislative efforts are also underway to curb forced arbitration and prevent state resources from flowing to schools that require students to consent to arbitration and waive their rights.
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Students sign contracts without understanding their implications
Students often sign contracts with universities without fully understanding the implications of these agreements. These contracts are formal and legally binding, and they outline the rights and obligations of both the student and the university. While the primary purpose of such contracts is to protect the financial interests of the educational institution, they also serve to limit the student's legal rights if any disputes or grievances arise.
The language used in these contracts can be complex and filled with legal jargon, making it challenging for students to fully grasp the implications without careful review. In their eagerness to pursue their educational goals, students may be inclined to quickly sign these contracts, just as they would click "agree" on an online app's terms and conditions. This can lead to a disconnect between what students expect from their university experience and the reality of their educational journey.
For instance, universities may include arbitration clauses in their contracts, requiring students to resolve disputes through a predetermined process, often favouring the institution. These clauses restrict students' options for seeking redress if they feel the university has wronged them. Additionally, some contracts may contain restrictive clauses that limit students' ability to take collective action or assert their rights as consumers.
The use of such restrictive clauses has raised concerns about the integrity and accreditation of institutions that employ them. Critics argue that universities should not take advantage of students' optimism and enthusiasm by requiring them to sign away their rights. Instead, universities should maintain transparency and ensure that students fully understand the terms of their enrolment.
To address these concerns, it has been suggested that accrediting agencies should consider the presence of restrictive clauses in enrolment contracts as a negative indicator of an institution's integrity. Additionally, making these contracts publicly available would allow for scrutiny by law enforcement and consumer protection experts, potentially deterring predatory practices by universities. Ultimately, students should be empowered to make informed decisions and understand the implications of the contracts they sign, ensuring their rights are protected throughout their academic journey.
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Contracts focus on experiences, not intellectual development
Students enrolling in colleges are often required to sign contracts that may limit their rights and restrict the ways in which they can seek redressal for grievances. These contracts are usually lengthy and contain legalistic jargon that may be difficult for students to understand fully. The primary purpose of these contracts is to protect the financial interests of the educational institution.
While the idea of a contract between a student and an educational institution may seem unusual, it is not uncommon for colleges to present themselves as offering an "experience" rather than solely focusing on intellectual development. This experience is often associated with prestige and satisfaction, and colleges market themselves based on their campus, facilities, programs, and distinguished faculty.
For example, Clemson University highlights that 92% of its seniors would choose Clemson again, emphasizing the positive experience and satisfaction associated with attending the university. The College of Charleston, with its historic campus and cutting-edge programs, also emphasizes the experience students can expect in various fields.
The narrative of "enacting an education" or focusing on "intellectual development" is often missing from the contracts that students sign. Students may not fully comprehend the implications of these contracts, and the fine print may include restrictive clauses that limit their rights. For instance, National University requires enrolling students to agree that they have not been promised anything other than what is contained in the agreement, potentially disregarding any previous advertisements or recruiter assertions.
Therefore, it is important for students to carefully review and understand the terms of any contract they are asked to sign during the enrollment process. While the experience and prestige of a university are important considerations, students should also be aware of their rights and the potential limitations imposed by these contracts.
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Frequently asked questions
Yes, some universities require students to sign an enrollment contract before they can officially register for classes.
The contract includes legalistic language that outlines the options available to the student in various situations. It also includes clauses that protect the university's financial interests and limit the student's legal rights if any disputes arise.
Yes, there are four main types of restrictive clauses: pre-dispute arbitration requirements, class-action bans, forced arbitration clauses, and clauses that disregard any promises made outside of the agreement.
No, the contract requirements vary depending on the university. For example, Kaplan University has a single-sentence clause, while South University includes multiple paragraphs in its contract.
Typically, students are not privy to negotiations and are expected to sign the contract as it is presented to them. However, it is important for students to carefully review the contract before signing to understand their rights and options.
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