For-profit college must give $103 million back to students!
The nation’s second largest for-profit college will forgive nearly $103 million worth of student loan debt to settle claims that it violated consumer protection laws.
Are you a victim of The Art Institutes recruiting tactics? Call us at (844) 236-3332 to learn more.
At issue are the recruiting tactics used by Education Management Corporation. It allegedly misled students about the benefits of a degree from its schools, and misrepresented job placement numbers.
In a separate action, the company agreed to pay an additional $95.5 million to settle four whistleblower lawsuits that claimed it misled the government about its recruiting strategy.
“Our investigation gave us a pretty clear picture of how EDMC lured prospective students into its programs, and how many students left the program with unfulfilled promises and oftentimes tremendous debt,” said Iowa Attorney General Tom Miller.
Miller is one of 39 state attorneys general that settled with the company on Monday.
EDMC operates a network of 110 schools in the U.S. and Canada. It owns the Art Institutes, as well as schools that operate under the names Argosy University, Brown Mackie College, and South University.
About 80,000 former students once enrolled in EDMC’s Art Institutes, Argosy University, Brown Mackie College, or South University are eligible for loan relief.
Call us at (844) 236-3332 for more information.
The whistleblower lawsuits alleged that EDMC paid its recruiters based on how many new students they enrolled, which is illegal for schools that accept federal student loans and grants.
The rule is in place to keep colleges from recruiting students who may not be a good fit for its programs. Those students are more likely to default on their loans.
“Operating essentially as a recruitment mill, EDMC’s actions were not only a violation of federal law but also a violation of the trust placed in them by their students — including veterans and working parents — all at taxpayer expense,” said U.S. Attorney Loretta Lynch in a statement.
For-profit colleges in general rely heavily on federal funds from loans and grants its students receive. About 90% of EDMC’s revenue came from these funds at one time, said Education Secretary Arne Duncan. EDMC did not admit to any wrongdoing.
Call us at (844) 236-3332 to see if your loans qualify for forgiveness!.
“Though we continue to believe the allegations in the cases were without merit, putting these matters behind us returns our focus to educating students,” said EDMC President and CEO Mark McEachen.
About 80,000 students are eligible for loan relief, which will average $1,370 per student. The Forgiveness funding is now available to former students who may have previously not qualified as well as new programs that offer relief on the overall debt. To learn more, Call us at (844) 236-3332.
Source:CNNMoney (New York)First published November 16, 2015: 3:23 PM ET