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.
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.
Agents were interviewing employees at the college and collecting files.