The rule aims to prevent predatory recruiting by schools that enroll ill-equipped students to get federal student aid funds, a major source of revenue. To qualify for Title IV federal student aid programs like Pell grants, Perkins and Stafford loans, colleges must comply with a Higher Education Act ban on incentive compensation for enrollment. The lawsuit asserts the schools “deliberately cultivated a corporate culture that prizes and rewards enrollment of students above all else.” It says staffers who met recruitment quotas would be entered into drawings for 32-inch flat screen televisions and iPods. Officials at California College San Diego declined a request for an interview about the lawsuit, pointing to a May 9 statement by Stevens-Henager, which calls the claims “completely baseless and without merit.” The lawsuit says college recruiters received cash bonuses, pay raises, upgraded office furniture, movie tickets, resort stays and other perks for enrolling students in violation of federal rules. Whistle-Blower Lawsuit Against California College San Diego

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