Having been a victim of this type of fraud, I'd say definitively worse than arguably. There's no legal recourse, ITT tech showed the world you have to be able to afford lawyers for 15+ years, and even then you can only come to a settlement (not a verdict).

GE required physics at all of our local community colleges were structured so the pass rate was 12% one of those years. If student's can't pass without being academically dishonest, regardless of merit, its just state sponsored fraud.