Operating a university costs a lot of money. While public schools receive funds from the state, private universities rely only on funds from other sources. With limited outside sources, the need for money might cause universities to resort to illegal practices to help cover the cost of education.
Universities partaking in these behaviors may end up in a qui tam lawsuit.
Funding research projects
Universities are not only places for students to obtain a higher education, but they are also where a substantial amount of research takes place. A significant discovery through these research projects can make the school money and bolster its ranking.
Since the cost of research is so high, several different government agencies provide funding for research projects if it benefits the agency’s interests. The demand for these funds is high, and universities often misrepresent the facts to obtain the limited amount of available money.
Obtaining government education loans and grants
Universities charge students tuition to attend, but this money does not always cover all of the expenses incurred by the school. Government funding in the form of loans and grants is available to students and schools to help offset the difference.
However, the money is only available to qualify schools and students. Sometimes, the school lies about its graduation rates, keeps money after students withdraw or falsifies its accreditation records in order to get the funds.
Knowing the right way to proceed when obtaining government funding is vital for all universities to avoid qui tam lawsuits.