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Study Abroad Agencies Subpoenaed For Influencing Colleges with Incentives


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Why have five study abroad agencies been subpoenaed by the New York Attorney General?

The agencies are under investigation because they were suspected of offering colleges special rebates, free and subsidized travel, unpaid seats on advisory boards, help with back-office services and marketing stipends to influence the colleges to send students to study in a study abroad program at a specific region.

The five agencies under investigation are:

  1. Institute for Study Abroad at Butler University
  2. American Institute for Foreign Study
  3. Institute for the International Education of Students
  4. Center for Education Abroad at Arcadia University
  5. Danish Institute for Study Abroad

Benjamin Lawsky, the lawyer pursuing the case, has already uncovered $20 million in contributions from lenders and universities, most of which are from students who overpaid student lenders.

This is an important investigation because Congress wants to increase the number of students studying abroad a year from 205,000 to one million, but they don’t want some schools to have an unfair advantage over others.

These agencies will need to produce documents, such as agreements between providers and universities, for the subpoena.

Here’s the entire article from the New York Times.

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