Western Governor’s University may have to write a $713 million check to the federal government, based on recommendations in an audit report that says the online school’s offerings are “correspondence courses.”
Released Thursday, the report by the U.S. Department of Education has found that Utah-based WGU’s largest degree programs fall short of eligibility requirements for federal financial aid under Title IV — and recommends the repayment of roughly $713 million awarded to students since July 2014.
“None of these 69 courses [out of 102] could reasonably be considered as providing regular and substantive interaction between students and instructors,” the report from the department‘s Office of Inspector General states.
The university was also dinged for failing to meet minimum instructional time requirements for course participation, according to the audit, and for inaccurately calculating repayments of financial aid after students withdrew from the school.
“One student never attended during the payment period,” the report states. “But the school did not return any Title IV funds.”
The audit examined the school’s operations between July 2014 and June 2016. In addition to the $713 million repayment, the audit is recommending that the Education Department’s chief operating officer for federal student aid determine whether WGU violated regulations prior to July 2014, which could lead to additional penalties against the university.
WGU posted a video response to the audit on the school’s web page. And spokeswoman Joan Mitchell said Friday that the report does not impose binding sanctions on the university.
“It’s a recommendation from the Office of the Inspector General, who has no enforcement authority,” Mitchell said.
More information will be provided as it becomes available.