How Lipscomb U. Violated Rules on Recruiter Bonuses

Lipscomb University, a private institution in Nashville, was recently revealed to have violated federal laws that bar bonuses paid to admissions officers based on the number of students they recruit. The violation occurred in 2003, but came to light in the wake of a U.S. Government Accountability Office report about incentive compensation last month. The Tennessean reported on how the university got into this situation. It was unaware of the law, but a consultant suggested that bonuses would motivate admissions officers. The university adopted the recommendation, paid out $62,500 in bonuses after a record year on enrollment, and ended up breaking federal law.