The FBI said it was serving a search warrant at FastTrain College in the 10000 block of Deerwood Park Boulevard on the Southside on Wednesday morning.
Officials said it was part of a joint investigation with the U.S. Department of Education's Office of Inspector General regarding Pell Grants, federal money given to students in financial need who have yet to get their first college degree.
There was a major undercover investigation by the General Accounting Office in 2010 of for-profit trade schools, which receive billions in federal loans and grants.
The investigation uncovered "deceptive and otherwise questionable sales and marketing practices," according to a government inquiry.
FastTrain student Ray Bartley was at the school Wednesday morning and said he nearly received a loan in which he would have been taken advantage of.
"I'm glad I came at this time because they could've took money from me, a lot of money from me, and I'd have been screwed," he said.
Bartley is one of more than 100 students who attend the college.
"They sold me a dream and I went for it," said Bernard Jordan, who's taking IT classes at FastTrain. "They told me whatever they needed to tell me to get me in that school and I went for it."
Jordan said the FBI questioned him about his scholarship money, particularly Pell Grants. Those like Jordan can get up to $5,500 a year. In Jodran's case, he said the school handled the application and money.
"Every semester, you get a cut of your Pell Grant, at least $2,500 or so for your books or something, but once they take care of your schooling, you got nothing," Jordan said.
One student said she pays $32,000 a year and doesn't understand some of the charges, like a $3,072 charge for room and board when the school doesn't even have on-campus housing, or nearly $2,000 in personal and travel expenses she said the school can't account for. She and Jordan said they want answers.
"It's confusing to me because I want to go to school," Jordan said. "I'm taking classes for IT. I don't know what's going on. I came here and it looked like chaos."
Agents were interviewing employees at the college and collecting files, though no arrests were made.
FastTrain has seven other campuses across the state. Students at other locations say at least one of them has also been raided in the past.
About 5.5 million students use Pell Grants. Nearly seven out of the top 10 colleges where those students go are for-profit colleges like FastTrain.