‘Wasted money’: How career-training companies scoop up federal funds with little oversight

offered a grant to go back to school,” said Dora Bray Magilke, 53, of Branson, Missouri, who was told she qualified for a government grant to attend an online company called MedCerts. Magilke leapt at the chance to move up in the medical field with the full $4,000 tuition for a medical-assistant training program covered. However, she was never told that she needed in-person clinical training, which MedCerts did not provide, to make her a viable candidate for a job as a medical assistant. After finishing the program and passing her certification exam in late 2021, she found that no one would hire her and the career center could not help. MedCerts, which offers short-term training in industries like health care and information technology, is a large workforce training provider enrolling thousands of students annually. Since 2018, just 54 percent of people who attended WIOA-approved programs became employed at all after completing their program. The Department of Defense does not release information on how many students complete specific programs for some of its grants – or even how much money the providers get. The Department of Labor does track and publish results, but the state and federal data on how many students finish a program and get jobs is often contradictory or is simply unavailable. MedCerts, owned by the publicly traded corporation Stride, Inc., promises quick, affordable paths to jobs; most courses take less than nine months to complete and cost less than $5,000. However, it is impossible to know how many MedCerts students finish their programs or how many of those who use taxpayer money to do so ultimately get jobs in the fields they trained for. The federal Department of Labor oversees the Workforce Innovation and Opportunity Act, known as WIOA, but the agency has been criticized for not providing enough reliable data about how WIOA grant recipients fare. Local workforce boards play a crucial role in connecting students with training programs, including those funded by the WIOA. In 2021, the government spent roughly $547 million on training for more than 220,000 people, yet it is difficult to know how many actually found success in the field they studied. Dora Bray Magilke’s story is a cautionary tale for students considering taking advantage of the government grants. Despite MedCerts\’ promises of quick and affordable paths to jobs, Magilke found that she lacked the experience employers required and the career center could not help her. The data available paints a bleak picture, with just 54 percent of people who attended WIOA-approved programs becoming employed at all after completing their program. The Department of Labor does not regulate training providers or their programs, and local workforce boards lack resources to track what’s effective. Students should be aware of the risks associated with taking advantage of such grants, as well as the lack of data available to determine whether or not the program is a successful path to a job in the field they studied.



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