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Thursday 14 December 2017
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A List of For Profit Schools & Loan Service Companies That Have Settled Law Suits in the past years, Closed Schools, Fraud, Numerous Investigations and Allegations

A  List of For Profit Schools & Loan Service Companies That Have Settled Law Suits in the past years, Closed Schools, Fraud, Numerous Investigations and Allegations

When I first started researching this topic a week ago it was for my own personal information, the more I discovered I was in AWE that although I knew there was a problem I had no idea how wide spread.  I also would like to believe I keep up to date on the news regularly, and I cant believe I missed all this information.  With that being said I choose to take all that information and put it together in one place for others to see, just in case they missed out on the news media reports like I did.

This is just a list of what I came across.  I am sure I could go on for days and find more but Honestly I am overwhelmed.

 

EDMC – abbreviation for Education Management Corporation The 2cnd largest for profit education company $95.5 million settlement resolves allegations of violating federal & State False Claims Act , provisions by falsely certifying that it was in compliance with Title IV of the Higher Education Act and parallel state statutes, Goldman Sachs was part owner at this time. November 16th 2015

4 For Profit schools operated under this Corporation

  1. The Art Institute
  2. Argosy University
  3. Brown Mackie College
  4. South University

EDMC operates a network of 110 schools in the US and Canada

Click Here This is a Wikipedia page for EDMC, scroll to almost the bottem and find all other lawsuites over the years

 

 The Apollo Group, Inc The #1 For Profit school , owns University of Phoenix and 5 other schools. The Department of Justice sued and later settled on Dec 15,2009 for False Claim Act  67.5 million dollars

  1. Western International University
  2. Axia College
  3. The College for Financial Planning
  4. Combined enrollment 269,000

Apollo operates over 280 locations, and of these locations, approximately 76 are campuses that provide classes in person The remaining installations are “learning centers” that provide local resources for students that learn online.

Click Here  this is a wikipedia page for The Apollo Group , scroll to almost the bottom and find all other lawsuites over the years.

 

Corinthian College a For Profit College based in Irvine California it aquired organically 21 institutes and colleges, Corinthian Colleges faced numerous investigations and lawsuits , including a federal criminal iinvestigation.  On July 3, 2014 the US department of Education and CCi reached an aggreement to execute a controlled shut-down of 12 of its USA schools and a sale of 85 other schools with transitin funding supplied by the Dept of Education and a independent monitor. In Febuary of 2015 EDMC  Education Credit Management Corporation ( which is a student loan  & bankruptcy management and loan collection, it is one of many guaranty agencies which oversee student loans for the US Dept of Education. ECMC charges fees to debtors and earns comisions from taxpayers by collecting on defaulted student loans, In return the US government has retrieved billions of dollars from student loan debtors.took ownership of more than half of Corinthian Colleges campuses. ECMC also agreed to forgive student debt on Corinthian College’s Genesis loans after a series of years. On April 26th 2015 Corinthian Colleges announced that they would cease operations at all remaining locations, which would effect 16,000 students.  Note Wells Fargo owned at one time 22.5 million in shares 

 

Remaining Campuses include

  1. 13 Everest College and Wyo Tech campuses in California,
  2.  10 Heald College campuses in California, Hawaii, Oregon
  3. Everst College Phoenix
  4. Everest College Tempe
  5.   Everest Institute in Rochester , NY

On May 4th 2015 Cainthian filed for Bankruptcy in Delaware

Law suit filed in Oct 10, 2013 in San Francisco Superior Court, misrepresenting job placement rates to students & investors, advertising for programs that it does not offer, unlawfully using military seals in advertising, inserting unlawful clauses into enrollment agreements that purport to bar any all claims. CCI is engaging in these unlawful, unfair, and fraudulent practices in connection with the sale of programs that are very expensive, the suit lists all cost for their overpriced degrees and goes on to say, CCi is selling these expensive programs to students throughout Californaia, many of whom head single parent families and have annual incomes that are near the federal poverty line. Head College , LLC has and continues to transact businesses throughout California , including at campuses in Concord, Fresno, Hayward, Modesto, Rancho Cordove, Roseville, Salinas, San Francisco, San Jose, Stockton and online. Heald college , LLC is a wholly owned subsidiary of Corinthian College.

Click Here A list of the Student Aid website

 

Click Here  Wikapedia page for Corinthian College

 

NelNet is a United states based Conglomerate that deals in the administration and repayment of student loans and education financial services, headquartered in Lincoln Nebraska.  The company provides a range of products through its subsidiaries that included:  customer service for student loan borrowers, technology related to student loans customer service, outsourcing services for guaranty agaencies, tuition payment plans, education planning, enrollment-related services and higher education planning tools. As of 2007 Nelnet held over $25 billion in student loans. 1/3 of all federally subsidized student loans currently held by students in the Unites States. owns over 50 subsidiaries that administer and collect student loans through out the US

The Department of Education audit revealed that from 1993-2007, Nelnet had utilized a loophole in federal tax legislation, that allowed the company to recieve a higher interest rate on specified loans, generation $278 million from tax payers, Nelnet disputed and ultimately U.S. Dept of Education reled that Nelnet would keep the 278 million.  The Chronicle of Higher Education reported in August 2010, that Nelnet settled a case for $55 million. The suit was filed by a former Department of Education researcher accused of defrauding taxpayers of billions

Click Here

The Chronicle of Higher Eduction August 15, 2010 Article

Click Here

 

Consumer Financial Protection Bureau Sues Nations Largest Student Loan Company Navient for Failing Borrowers at Every Stage of Repayment. Dated January 18, 2017

Navient , Formerly part of Sallie Mae, Illegally Cheated Borrowers Out of Repayment Rights Through Shortcuts and Deception.  Navient is the largest student loan servicer in the United States. It services the loans of more than 12 million borrowers, including more than 6 million accounts under its contract with the Department of Education. Altogether, it services more than $300 Billion in federal and private student loans.

Consumer Financial Protection Bureau’s Website announcing the Law Suit against Navient.

Click Here

Bloomberg Article Why Sallie Mae is Splitting in 2

Click Here

 

I am sure this will take quite some time to settle.  Question is will this action Really help the Students ?

 

I apologize in advance for any errors made, information was gathered by Governments sites, news paper articles, Wikapedia I found to be helpful with law suits on For Profit colleges.  I hope this paints a picture of the situation.  For students is there hope ? Seems like an awful lot of money has been collected and yet the Students bills have not been reduced, still no Help for the Real Victims here the tax payers and the students.

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