Education Management Corporation know as (EDMC) owner of one of the biggest for -profit school companies, and owned chains including
The Art Institute
Argosy University
South University &
Brown Mackie College
110 for profit schools in all
80 % of EDMC funds come from the US government Funds, from US Dept of Education Title IV programs, Pell Grants, and Federal Student Loans.
In 2009 EDMC allocated 21.6 % of its revenue, or $ 435 million to marketing and recruiting, and 16 % or $ 319 million to profit (Wikapedia)
The school has been involved in multiple substancial law suits by Government and State Enities. They have been accused of targeting low=income students, promising a qauality education and career opportunities, also charged with high tuition for sub-standard programs.
New York Attorney General Sues EDMC for $ 1.2 Million
New York Attorney General Law Suit
US Dept of Justice Report on EDMC Lawsuit
US Dept of Justice Website
A civil action was filed by The United States of America and the States of California, Florida,Illinoism Indiana,Massachusetts, Minnesota, Montana, New Jersey, New Mexico,New York, Tennessee, and the Distict of Columbia
The US States sue EDMC
In 2017 EDMC sold most of its schools to Dream Center Education Holdings, LLC
On Friday June 29th 2018 Education Management Corporation ( EDMC) and 58 related companies filed for Bankrupsty
At the same time EDMC filed for Bankruptsy Dream Center Foundation a non profit announced that it will close 30 of the campuses that it bought from EDMC just last year, including several Art Institutes.
Not sure on the connections of both companies but both Corporations are protecting their own interests while further harming there former and current students
For more detailed information click the link below an article by predatory student lending org
Preditory Student Lending Website article
Other For Profit Schools Law Suits Closings
2014 Consumer Financial Protection Bureau sued ITT for Preditory Lending
ITT Law Suit
2015 Consumer Financial Protection Bureau sued Corinthian College( for profit college) $ 480 Million
Everest College, Whyo Tech, and Heald College Lawsuit CFPB
Whyo Tech, Heald College and Everest College
Sept 12 2016 CPFB sues Bridgeport Education Inc
Bridgeport College Sued by CFPB
The FTC has been investigating The University of Phoenix since 2015, owner The Apollo Group, ADtalem Global Education owner of Devry University sells to small for profit College in California and settles $ 100 million to the FTC
December 2018 Education Corporation of America shut down schools like Virginia College and Brightwood Career Institute
Market Watch Report
Recent articles written on Updated status on Sallie Mae / Navient Law suite, each article brings new information , get informed
Most recent article from Market Watch
Nerd Wallet What you need to know
Alot has happened in just the past year, If you are currently attending a for profit school, start googling to see if there have been any law suits filed. Keep informed regularly. It does seem to be that in each lawsuit filed the govenment is getting money back but no help for students as of yet. I did read somewhere that if the student loan crises bubbled it would be more devesting to our economy than the Sub Prime Mortgage Crisis. I am sickened to think the students have no relief in sight, you can file for a application to the Borrowers Defense Click here to start
It says some applications are not even looked at for a year, not sure if that is true.
this site gives tips on filing the application
I went to my daughters school she attended in 2007-graduated 2010 Art Institue San Diego California and asked for her student file, we had to return the next week to get it and it was not as it was originally that I know, but I did get something I thought was important( for our own justification i am sure ) A BROCHURE From The ART INSTITUTE SAN DIEGO, it was stapled to a pamphlet on how to apply for a Creative Education Loan ( Great title) It was Creative I give them that, but the Pamphlet/Brochure A guide on who to ask and how to ask someone to Co-sign for your loan, How to approach the people you choose to consider, start with family, Are there freinds who can help ?, Step one present your case, step 2 be specific, defend your dicision…your program choice,school choice, and career choice, make sure they make the connection that completing your education will help you attain a Career. Stunned at what I read. I can not recite the whole content but Stunned knowing what I do now. These Colleges steered students on What loans to take out. Anyway their might be something in your file that might help your application process, you can attatch it to your application.
If These for Profit Schools can file for Bankruptsy why can’t the Students. look into it, what do you have to loose. The Government will not be addressing this Crisis on Student Loans anytime soon.
Some forcast a Bubble is about to pop Below articles in reguard to that topic
Student Loan Bubble Nasdaq report
Forbes article June 2018
2018- 1.5 Trillion
New york Post August 2018
New York Article 2018
