Facts showing a school intentionally inflated job-placement numbers to take tuition can support an exemplary-damages claim. Exemplary damages, also called punitive damages, punish fraud and require clear and convincing proof of fraud, malice, oppression or gross negligence. For a college program, that means proof the school knowingly sold enrollment with false placement rates, false salary gains or false employer ties. Keep ads, emails, enrollment scripts and loan papers that show what you were told and what you paid.
Table of Contents
- What must the law see for punishment damages?
- Which placement claims look like fraud?
- How do you show intent rather than mistake?
- What should you gather before you talk to a lawyer?
What must the law see for punishment damages?
California law allows exemplary damages only on clear and convincing evidence of oppression, fraud or malice, according to the Shouse Law Group summary of the state statute. It defines fraud as intentional misrepresentation, deceit or concealment to deprive a person of property or rights. Texas law sets a similar higher bar, as described in LawServer's text of the state damages law.
It limits exemplary damages to harm proved by clear and convincing evidence to result from fraud, malice or gross negligence. Ordinary liability is not enough. You must connect a specific false claim to intent and to loss of money, debt or job opportunity.
Which placement claims look like fraud?
The strongest pattern is a specific job-rate promise used to recruit students. The FTC alleged DeVry University told prospective students 90% of graduates seeking work got field jobs within six months plus 15% higher incomes, which it called deceptive and unsubstantiated, according to the FTC refund announcement. A second pattern pairs inflated rates with false employer links.
The FTC and New Jersey alleged Sollers College lured enrollment with inflated placement rates and false hiring ties to prominent employers, according to the FTC business alert. That alert also cited income-share agreements lacking required Holder Rule disclosures. General boasting helps less. Named rates, salary figures, hiring partners and time frames help more.
How do you show intent rather than mistake?
Intent comes from proof the school knew the numbers were weak and kept using them. Save the ad, catalog page, email, text, call script notes and enrollment-department presentation with the rate. Compare inside and outside proof. Ask for the graduating class size, the job definition, the survey response rate and the exclusion rules.
A 90% rate means little if non-responders were dropped, unrelated jobs counted or only one small campus was measured. Track who repeated the claim after questions. Admissions testimony, manager training, vendor reports and prior complaints can show deceit or concealment. One error suggests sloppiness, while repeated use after warnings points toward fraud.
What should you gather before you talk to a lawyer?
Build a simple paper trail from recruitment to repayment. It helps a lawyer test fraud, causation and clear-and-convincing proof.
Bring the original files, not summaries. Do not sign a release or debt rewrite before legal review.
- Save every placement, salary and hiring-partner promise with dates and sender names.
- Save enrollment, tuition, loan, income-share and refund records showing amounts paid or owed.
- Write a timeline of who said what, when you relied on it and what job search followed.
- Get classmates' matching materials to show a pattern, not a single misunderstanding.
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