Dear , VA Board of Cosmetology, NACCAS, US Dept. of Education, Maryland Higher Educations Commission, WV Board of Cosmetology, OIG, IRS: I am writhing this to inform you of the illegal, unethical, false advertising, and bait and switch tactics being conducted by International Beauty School's in Winchester VA, Martinsburg WV, and Cumberland MD. The total tuition and fees for there cosmetology program is $26,500: Registration $150, Tuition $24,500, and Book/Kit $1850 which is absolutely ludicrously high for these small markets (maybe NY city). The reason there tuition is so much higher then other schools in there area is because they are using a bait and switch tactic on incoming students. They are promising them that if they do good in school, the school will pay them with "monetary awards" to help them pay for there education. The reality is the school is paying them with the students own student loans and pell grants that the students take out to go to school but the school never tells them that. Most of the students do not qualify for the "attendance awards" so the school ends up keeping the full $26,500, even after the student drops from school. The reason the tuition is so high is because the school falsely advertises they are going to pay for the students tuition and fees by giving them back a check for $420 every two weeks.
What the school neglects to tell the students is that it is really the students money they are giving back from the school in the form of high interest loans and pell grants that the student took out for payment to the school. Classic bait and switch. Have the student think they are getting paid for good attendance when in reality the school is just having them take out high interest student loans/grants and paying the students with their own money. On the other hand if the student drops after they have taken 50% of the program the school keeps the full $26,500 and the student stops getting paid from their own money. They also don't tell the students if they don't hit certain attendance benchmarks, grades, or payment schedules they will not get "paid" or a "bonus". So basically they are having students take out larger loans and telling them they have an "opportunity" to be paid there own money, without ever telling the incoming student. Most students never get paid a bonus or attain these goals because they are high risk students, single parents, welfare, etc and end up missing time so they cant get "paid". The school then tells the student they cant get paid and they keep all the money. Worst of all, when the students finds out they cant get paid, they drop out of school and are told they have a huge balance owed to the school and the school won't release their transcript until the balance is paid. Which is virtually impossible for these students as they are all unemployed, mostly single parents.
This is not only unethical but illegal. The attachments are what are given to students when they come in for an interview. Attachment 1: Under "Let Us Help You Succeed" their first bullet is *Bi weekly payments from IBS up to $420 time 25 = $10,500. Obvious bait and switch. At no place do they tell the student this is actually their own loan money the are getting "paid". The statement implies payment"from IBS" when in reality it is the students high interest federal loan. The student does not know this and does not know they have to pay the "award" back. Graduation bonus of $10,00.00 paid by IBS. Obvious bait and switch. At no place do they tell the student this is actually their own loan money they are getting "paid by IBS". They never specify how you can get a "bonus" for graduating. Also, it is not a "bonus" it is just them getting their own loan money back that they have to pay back at a high interest rate. When you investigate this ask the school for proof of how many $10,000 graduation bonus's have been paid since they bought these schools. State Board reimbursement $210.00 paid by IBS. Blatantly misleading. This is not paid by IBS, this comes out of the student loan proceeds. It is actually paid by the student out of the funds IBS disbursed for them. Gift certificate $360.00 for perfect attendance. Blatant Lie. Not a gift certificate but money taken out of the students loan disbursements. Students don't realize they are getting all of these "awards" out of their own money Complimentary services $2000. Blatant lie. Not one student ledger account is credited with "complimentary services". If they were "paying" students $2000 in complimentary services and crediting that money to their account that would be considered taxable income and a W2 or 1099 would have to be completed. Tips $3000 (from serving clients).
This is such a blatant lie they put in their advertising. Most of our clients are elderly and may leave a $1 tip. Same as above, no student ledger accounts have been credited with $3000 in tips and if they were they are in violation of IRS laws as no W2's or 1099 have been completed. Retail earnings $3000 (from resale of products".) Just another way to deceive students into enrolling in the program and give them nothing once they start school. TOTAL =$20,070. What they are implying here is that the student can earn $20,070 towards the paying of there tuition. In reality they cannot earn the $20,070, it just comes out of the students own loan disbursements. They still have to pay it back at a high interest rate. If in fact the school was giving them the $20,070 it wouldn't be as bad, but the students never achieve these "awards" and by the time they realize its a scam its too late for them to drop. They know if they drop they wont be able to get a transcript as the school says they owe a balance. Even in some bizarre world where what they are doing was OK with paying "awards", this $20,070, if given to the students would be taxable income given to the student and should have been declared so by IBS to the IRS. Which means, IBS should have been paying payroll taxes on these funds, issuing w'2s and/or 1099, and complying with IRS regulations? Help friends and family members to take advantage of the Above benefit!!! Lie. This is no "benefit", this is the students own money.
In small print "We do not guarantee any of the above. These are based on information obtained from previous student's earning". As a state agency, accrediting agency, and US dept of Education I would demand back up of the "info" that these claims are being based on. This is outright Fraud. Attachment 2: Same fraud as above Attachment 3: 2c. $18000 total aid possible through our biweekly check, student awards, gift certificates, and client compensation if you qualify. Whether a student "qualifies (which never happens)," it is not aid they are receiving from the school, it is their own loan money that is being deceptively given back to them to make believe they are getting paid. When they leave school they leave with huge loan debt. 3a Take your share from uncle Sam. This may not be illegal like everything else but highly unethical. This is not "your share" but aid that you can apply for and if your eligible help pay for your education. "Your share" implies you are due this money without qualifying. 4b. We have licensed cosmetology graduates earning up to $40,000 or more.
As published information they are required to show proof of these clams in their advertisements. As their regulating agency's I would demand that immediately. Maybe one out of a hundred make this kind of money? At the bottom of the this attachment in small print *Awards offered to students who meet requirements based on school policies". If these "awards" are based on school policies how are prospective students able to make an informed decision on enrolling in the school if the school policies are not given to the student prior to enrollment? Attachment 4: 1. Complimentary services... This is a lie. On a very limited bases is this done and you have to be a perfect student. Where are the published guidelines? 2. Same deceptions as above. 3. Same deceptions as above, except they added more exclamation points in dollar signs $$$$$. Attachment 5: This is a glossier brochure which states the same lies as above. The programs at IBS are being marketed to student in VA, WV, PA, MD and surrounding states. A cease and desist order needs to be done immediately to stop the predatory destruction of unsuspecting young students. As an employee of one of these institution's I can no longer condone what is happening here and felt it should be made public. Also there is wide spread use of drugs by the students and staff and the "refunded award" money is actually used to buy the drugs from a staff member.
This is a classic fraud being committed onto these students. For the students who do get some of these $$ (awards) they are basically getting some of their own money back, so in effect the tuition would be lower for them. For struggling students, which is 90% of them they get no "awards" back and essentially pay the full 26 thousand. This is illegal, against accreditation standards, against published state standards that you cant charge students different tuition's. The ownership thinks they are getting away with this by giving some money back to a few students but keeping most of the money from most of the students. They make the student feel it is their fault for not getting "awards ($$)" and not the schools fault. The owners of these institutions have family members that were barred from participating in Title IV funding and the schools were bought using other family members names but the institutions still remain under control of the barred family members? As regulating agencies I challenge you to investigate these allegations, talk to current and former students, transfer students, current and former employee's (anonymously, as they are all threatened), and make your own judgements. All of the state's have had a great number of complaints but nothing ever seems to get done for the benefit of the students. Ask the VA and WV regulators to give you copies from the past 5 years, you will be amazed. I would look into the individuals on the state levels that are supposed to be investigating this? Some rumors abound but they may just be rumors? I look forward to your visit and hopefully things will change for the benefit of our students, staffs, and tax payer dollars that are being abused. Mrs. V.
International Beauty School Reviews
Dear , VA Board of Cosmetology, NACCAS, US Dept. of Education, Maryland Higher Educations Commission, WV Board of Cosmetology, OIG, IRS: I am writhing this to inform you of the illegal, unethical, false advertising, and bait and switch tactics being conducted by International Beauty School's in Winchester VA, Martinsburg WV, and Cumberland MD. The total tuition and fees for there cosmetology program is $26,500: Registration $150, Tuition $24,500, and Book/Kit $1850 which is absolutely ludicrously high for these small markets (maybe NY city). The reason there tuition is so much higher then other schools in there area is because they are using a bait and switch tactic on incoming students. They are promising them that if they do good in school, the school will pay them with "monetary awards" to help them pay for there education. The reality is the school is paying them with the students own student loans and pell grants that the students take out to go to school but the school never tells them that. Most of the students do not qualify for the "attendance awards" so the school ends up keeping the full $26,500, even after the student drops from school. The reason the tuition is so high is because the school falsely advertises they are going to pay for the students tuition and fees by giving them back a check for $420 every two weeks.
What the school neglects to tell the students is that it is really the students money they are giving back from the school in the form of high interest loans and pell grants that the student took out for payment to the school. Classic bait and switch. Have the student think they are getting paid for good attendance when in reality the school is just having them take out high interest student loans/grants and paying the students with their own money. On the other hand if the student drops after they have taken 50% of the program the school keeps the full $26,500 and the student stops getting paid from their own money. They also don't tell the students if they don't hit certain attendance benchmarks, grades, or payment schedules they will not get "paid" or a "bonus". So basically they are having students take out larger loans and telling them they have an "opportunity" to be paid there own money, without ever telling the incoming student. Most students never get paid a bonus or attain these goals because they are high risk students, single parents, welfare, etc and end up missing time so they cant get "paid". The school then tells the student they cant get paid and they keep all the money. Worst of all, when the students finds out they cant get paid, they drop out of school and are told they have a huge balance owed to the school and the school won't release their transcript until the balance is paid. Which is virtually impossible for these students as they are all unemployed, mostly single parents.
This is not only unethical but illegal. The attachments are what are given to students when they come in for an interview. Attachment 1: Under "Let Us Help You Succeed" their first bullet is *Bi weekly payments from IBS up to $420 time 25 = $10,500. Obvious bait and switch. At no place do they tell the student this is actually their own loan money the are getting "paid". The statement implies payment"from IBS" when in reality it is the students high interest federal loan. The student does not know this and does not know they have to pay the "award" back. Graduation bonus of $10,00.00 paid by IBS. Obvious bait and switch. At no place do they tell the student this is actually their own loan money they are getting "paid by IBS". They never specify how you can get a "bonus" for graduating. Also, it is not a "bonus" it is just them getting their own loan money back that they have to pay back at a high interest rate. When you investigate this ask the school for proof of how many $10,000 graduation bonus's have been paid since they bought these schools. State Board reimbursement $210.00 paid by IBS. Blatantly misleading. This is not paid by IBS, this comes out of the student loan proceeds. It is actually paid by the student out of the funds IBS disbursed for them. Gift certificate $360.00 for perfect attendance. Blatant Lie. Not a gift certificate but money taken out of the students loan disbursements. Students don't realize they are getting all of these "awards" out of their own money Complimentary services $2000. Blatant lie. Not one student ledger account is credited with "complimentary services". If they were "paying" students $2000 in complimentary services and crediting that money to their account that would be considered taxable income and a W2 or 1099 would have to be completed. Tips $3000 (from serving clients).
This is such a blatant lie they put in their advertising. Most of our clients are elderly and may leave a $1 tip. Same as above, no student ledger accounts have been credited with $3000 in tips and if they were they are in violation of IRS laws as no W2's or 1099 have been completed. Retail earnings $3000 (from resale of products".) Just another way to deceive students into enrolling in the program and give them nothing once they start school. TOTAL =$20,070. What they are implying here is that the student can earn $20,070 towards the paying of there tuition. In reality they cannot earn the $20,070, it just comes out of the students own loan disbursements. They still have to pay it back at a high interest rate. If in fact the school was giving them the $20,070 it wouldn't be as bad, but the students never achieve these "awards" and by the time they realize its a scam its too late for them to drop. They know if they drop they wont be able to get a transcript as the school says they owe a balance. Even in some bizarre world where what they are doing was OK with paying "awards", this $20,070, if given to the students would be taxable income given to the student and should have been declared so by IBS to the IRS. Which means, IBS should have been paying payroll taxes on these funds, issuing w'2s and/or 1099, and complying with IRS regulations? Help friends and family members to take advantage of the Above benefit!!! Lie. This is no "benefit", this is the students own money.
In small print "We do not guarantee any of the above. These are based on information obtained from previous student's earning". As a state agency, accrediting agency, and US dept of Education I would demand back up of the "info" that these claims are being based on. This is outright Fraud. Attachment 2: Same fraud as above Attachment 3: 2c. $18000 total aid possible through our biweekly check, student awards, gift certificates, and client compensation if you qualify. Whether a student "qualifies (which never happens)," it is not aid they are receiving from the school, it is their own loan money that is being deceptively given back to them to make believe they are getting paid. When they leave school they leave with huge loan debt. 3a Take your share from uncle Sam. This may not be illegal like everything else but highly unethical. This is not "your share" but aid that you can apply for and if your eligible help pay for your education. "Your share" implies you are due this money without qualifying. 4b. We have licensed cosmetology graduates earning up to $40,000 or more.
As published information they are required to show proof of these clams in their advertisements. As their regulating agency's I would demand that immediately. Maybe one out of a hundred make this kind of money? At the bottom of the this attachment in small print *Awards offered to students who meet requirements based on school policies". If these "awards" are based on school policies how are prospective students able to make an informed decision on enrolling in the school if the school policies are not given to the student prior to enrollment? Attachment 4: 1. Complimentary services... This is a lie. On a very limited bases is this done and you have to be a perfect student. Where are the published guidelines? 2. Same deceptions as above. 3. Same deceptions as above, except they added more exclamation points in dollar signs $$$$$. Attachment 5: This is a glossier brochure which states the same lies as above. The programs at IBS are being marketed to student in VA, WV, PA, MD and surrounding states. A cease and desist order needs to be done immediately to stop the predatory destruction of unsuspecting young students. As an employee of one of these institution's I can no longer condone what is happening here and felt it should be made public. Also there is wide spread use of drugs by the students and staff and the "refunded award" money is actually used to buy the drugs from a staff member.
This is a classic fraud being committed onto these students. For the students who do get some of these $$ (awards) they are basically getting some of their own money back, so in effect the tuition would be lower for them. For struggling students, which is 90% of them they get no "awards" back and essentially pay the full 26 thousand. This is illegal, against accreditation standards, against published state standards that you cant charge students different tuition's. The ownership thinks they are getting away with this by giving some money back to a few students but keeping most of the money from most of the students. They make the student feel it is their fault for not getting "awards ($$)" and not the schools fault. The owners of these institutions have family members that were barred from participating in Title IV funding and the schools were bought using other family members names but the institutions still remain under control of the barred family members? As regulating agencies I challenge you to investigate these allegations, talk to current and former students, transfer students, current and former employee's (anonymously, as they are all threatened), and make your own judgements. All of the state's have had a great number of complaints but nothing ever seems to get done for the benefit of the students. Ask the VA and WV regulators to give you copies from the past 5 years, you will be amazed. I would look into the individuals on the state levels that are supposed to be investigating this? Some rumors abound but they may just be rumors? I look forward to your visit and hopefully things will change for the benefit of our students, staffs, and tax payer dollars that are being abused. Mrs. V.