. >> do we train our people to give that kind of misadvice? absolutely not. >> we asked the university of phoenix's president, dr. bill pepicello why our hidden camera caught this same false promise. the same thing happens, a different recruiter, university of phoenix, if i come and pay all this money, can i teach? absolutely. 100%, 100%. >> well, no change in that particular instance. that's absolutely -- it's indefensible. it's unacceptable. and you know, we deal with those cases immediately. as they come up. >> he said they're investigating these cases. and taking steps to make sure it doesn't happen again. >> believe you me, no one here has not gone to school because of financial aid. >> and the government has been doing its own investigation into for-profit schools like the university of phoenix. >> a lot of people have student loans but the best thing about it, it's not like a car note where if you don't pay, they're going to come after you. >> in several cases, recruiters told undercover agents you're not penalized if you don't pay a fe

do we train our people to give that kind of misadvice? absolutely not. end of the day, we have to get it right. >> reporter: but you have not been getting it right, right? that's why you have to settle with the whistle-blowers that said, i only get paid with people that come in with the loans. and you settled that suit for an amazing amount of dollars. isn't that proof? >> i wouldn't say it's proof. it's certainly proof that we weren't doing as well as we could. we could do better. >> reporter: then, there's the issue of money. the recruiter told our producer, he could take out as much as $35,000 in federal financial aid, in order to pay for school. she said there might even be some money left over after fwigs. >> i tell students to take out the maximum. if you don't need or or use, you can take out more than you need and send back the excess. they tell you use it for educational purposes. no one follows the money. >> reporter: our own experience, with our investigation, is that we were heavily pushed to borrow the max, that we could from public money. h