Course Catalog / BMU 104 / Lesson 5 of 5
BMU 104
Lesson 5: Red flags and your choice
Quick review
1. Name three numbers on College Scorecard.
See the answer
Graduation rate, median earnings, and typical debt.
2. How should you get a transfer credit answer?
See the answer
In writing, before you enroll.
Why this matters
Some schools push hard to sign you up. Here is a made up example. A recruiter from Bright Path Career School (not a real school) says 90% of its graduates get jobs. Later you learn that for your program, only about half did. The FTC warns that some schools recruit with job and pay claims that are not true.
In this lesson you will learn the red flags, then fill in a comparison sheet and make your choice.
Start with what you already do
You already know a pushy salesperson is a reason to slow down.
Common belief: A school that guarantees a job must be good.
What is actually true: Guarantees and big placement claims can be false. The FTC says to ask questions, do your own research, and not rely on brochures.
In this lesson you will
- Spot five red flags at a school
- Fill in a comparison sheet for two or three schools
- Choose a school and write two reasons
Key words
- predatory school
- A school that uses false promises or pressure to sign up students, often for loans.
- placement rate
- The share of graduates who get jobs in their field.
- borrower defense
- A way to ask for federal student loans to be forgiven if a school misled you.
Five red flags
- Pressure. Sign today, or the deal is gone.
- Big promises. Guaranteed jobs or very high placement rates with no proof.
- Accreditation you cannot find. Not on DAPIP or CHEA.
- Money talk first. They push loans or special payment deals before you see costs in writing.
- Bad numbers. Low graduation, low earnings, and high debt on Scorecard.
Ask for placement rates in writing: what share got jobs in the field, and how soon. Then check them yourself. If a school misled you, Federal Student Aid explains borrower defense.
Text version of this figure
Your school comparison sheet. Same checks for each school.
- Step 1, Needs met?: Credential, license, and format.
- Step 2, Accredited?: School, accreditor, and program.
- Step 3, Net price: Plus costs beyond tuition.
- Step 4, Outcomes: Graduation, earnings, debt, and transfer.
- Red flags: Pressure, big promises, missing accreditation, loans first, bad numbers.
- Decision: Your choice, two reasons, and one next step.
Source: FTC; ED; College Scorecard (Oct 29, 2026).
Worked example: Tasha decides
| Check | Community college | Career school |
|---|---|---|
| Needs met | Yes | Yes |
| Accredited | Yes, program too | Yes, program too |
| Net price for 2 years | About $5,800 | About $29,000 |
| Graduation rate | 48% | 41% |
| Red flags | None | Pressure to sign this week |
Her choice: the community college. Reasons: much lower net price and no pressure. Next step: meet an advisor. Numbers are made up for the example.
Practice: Count the red flags
- A recruiter calls Joy three times in one day. He says the class is almost full and she must sign today. He has not shown her a cost sheet, but he has loan papers ready.
- A school gives Lee a written cost sheet, a written placement rate with how it was counted, and two weeks to decide. It is on DAPIP.
For each school, name the red flags you see from the five.
Check your practice: feedback
- Joy: two red flags: pressure (sign today) and money talk first (loan papers before a cost sheet). She should check accreditation and Scorecard before she talks to him again.
- Lee: no red flags so far. He should still check the placement rate against Scorecard earnings.
Common mistakes
- Signing on the first visit. Take the papers home and compare.
- Believing placement claims without proof. Ask for them in writing and check.
- Comparing schools with different checks. Use the same sheet for each.
Try it: Capstone: your school comparison sheet
Pick your scenario:
- I am choosing between two schools
- I am choosing between three schools
- I have one school and want to check it
- Put two or three schools in columns.
- Fill in needs, accreditation, net price, and outcomes from Lessons 1 to 4.
- Check each school for the five red flags.
- Write your choice and two reasons.
- Write one next step with a date, like meet an advisor.
- Then check it on the Course project page.
Do it by: 7 days from today
Reflect
What would you tell a friend who is about to sign up at a school that called them?
Check your understanding
1. A recruiter says sign today or lose your spot. What is this?
- A red flag
- A normal deal
- A sign of high demand
See the answer and feedback
A is correct. Yes. Pressure is a red flag. Slow down.
B: Good schools give you time. Review Five red flags.
C: Pressure is a sales tactic, not proof of demand. Review Five red flags.
2. A school claims 95% of graduates get jobs. What should you do?
- Trust it if it is on the website.
- Ask for proof in writing and check it.
- Ask the recruiter to confirm it.
See the answer and feedback
B is correct. Yes. Check the claim yourself.
A: Claims on a website can be false. Review Five red flags.
C: The recruiter is not a neutral source. Review Five red flags.
3. What is borrower defense?
- A loan for school
- A type of scholarship
- A way to ask for loans to be forgiven if a school misled you
See the answer and feedback
C is correct. Yes. Federal Student Aid explains how.
A: It is not a loan. Review Key words.
B: It is not a scholarship. Review Key words.
Takeaway: Slow down and compare
- Pressure, big promises, accreditation you cannot find, loans first, and bad numbers are red flags.
- Get claims in writing and check them.
- Choose with two reasons and one dated next step.
Capstone rubric
This is your course project. It is checked on 6 rows: Needs, Accreditation, Net price, Outcomes, Red flags, Decision. See what Ready means on the Course project page.
When it is done, build it on the Course project page and press Check my project. Your certificate needs it.
Use it: your follow up plan
- In 7 days: Do your next step, like meeting an advisor or asking for transfer answers in writing.
- In 30 days: Update your sheet, retake the self check, and start BMU 203 to plan how to pay.
- Put both dates on your calendar now.
Your job aid: print or save the School Comparison Sheet.
Keep learning
- BMU 203 Mission: Degree Without the Debt: pay for school without debt (All Access).
- BMU 103 Back to School Game Plan: your degree plan, if you have not made one.
- College Scorecard: compare schools any time.
One question for us: What one change would make this course more useful for you?
Recap
- Pressure, big promises, missing accreditation, loans first, and bad numbers are red flags.
- Ask for placement rates in writing and check them.
- Compare schools on the same sheet.
- Choose with reasons, then plan how to pay in BMU 203.
You now have: a school comparison sheet with your choice, two reasons, and one next step.
Next up
You finished the lessons. Now take the Posttest. Score 80% or higher to pass, and retake it as often as you need. Then answer a short optional survey and get your Certificate of Completion.
Your certificate needs both the Posttest and your course project.
Sources
- FTC Consumer Alert: Some colleges recruit but don't tell the truth (Oct 2023) (current as of Oct 29, 2026)
- FTC Consumer Advice: Choosing a College: Questions To Ask (current as of Oct 29, 2026)
- Federal Student Aid: Borrower Defense Loan Discharge (current as of Oct 29, 2026)
- U.S. Department of Education: College Scorecard (current as of Oct 29, 2026)
- U.S. Department of Education: Database of Accredited Postsecondary Institutions and Programs (DAPIP) (current as of Oct 29, 2026)
- Council for Higher Education Accreditation (CHEA): Search institutions (current as of Oct 29, 2026)
