Lawsuits: Career Colleges deceive students

Career Colleges are being sued all over the country.

Allegations ranging from deceiving students to not dispensing

their student's financial aid.

Tom Harkin (D-Iowa) - "At their best, for-profit colleges provide flexible alternatives for students to pursue post-secondary education, but unfortunately, some have become highly profitable multi-state corporations while failing to provide the learning environment and career services that will enable their students to graduate and succeed."

Arne Duncan (US Secretary of  Education) - “We will hold schools accountable for ensuring their students are not saddled with unmanageable student loan debt.”

June 21, 2013 - Missouri woman awarded $13 MILLION from Vatterott Colleges.  She was told that as a Medical Assistant, she would earn between $15 and $17 an hour.  She took out $20,000 in student loans to do so, and enrolled in the 60 week course.  As it turns out she was mistakenly(?) enrolled in the Medical Office Assistant Program (which DOESN'T EXIST in the real world, there is no certification for it) and to complete the Medical Assistant Program, it would take another 30 weeks and $10,000.  Although she only sued for $2 million, the jury awarded her $13 million.

May 13,  2013 - Massachusetts Attorney General launched an investigation into University of Phoenix, Kaplan, and Everest Colleges claiming their deceptive practices are leaving students saddled with debt.  This announcement comes after the laswsuit into Sullivan & Cogliano Training Centers, Inc.

May 30th, 2012 - American Career Colleges  faced a class action lawsuit alleging that the school accepted Federal Title IV loans that they didn't dispense, and hid that fact from students.  i.e. Tuition was $18,300 and they accepted on the student's behalf $32,500 in student loans.  In addition, they didn't meet Federal Loan requirements.

August 8, 2011 - Education Management Corporation was handed a subpoena from the Department of Justice and 4 states alleging through deceptive techniques they would have to return the $11 billion in student aid they collected in the previous 8 years.

They operate 105 schools under 5 names:

• Art Institute
• Argosy University
• Brown Mackie College
• South University.

There are more than 2,000 For-Profit Schools receiving 

$24 billion in Federal Title IV Loans each year.

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