NY Attorney General Secures $10.25 million settlement with Career Education Corp.

New York's attorney general has entered into a $10.25 million settlement with one of the nation's largest for-profit school corporations after a two-year investigation into allegations of inflated job placement statistics and other misconduct relating to enrolling students.  Attorney General Eric T. Schneiderman announced that the settlement with Illinois-based Career Education Corporation "resolves an investigation that revealed that in disclosures made to students, accreditors, and New York State, CEC significantly inflated its graduates’ job placement rates. CEC will pay $9.25 million in restitution to students, a $1 million penalty, and has agreed to substantial changes in how the company calculates and verifies placement rates."  According to the attorney general's office, its investigation revealed that CEC inflated job placement statistics from at least 2009 through the spring of 2011."  CEC operates schools that enroll about 75,000 students nationwide, including the Sanford-Brown Institute, American InterContinental University, and Colorado Technical University.

Accreditor reportedly will allow Ivy Bridge students to continue at Tiffin University

The Chronicle of Higher Education reports that the Higher Learning Commission has indicated that current students in Ivy Bridge College associate degree programs can now continue their studies at Tiffin University.
Tiffin was ordered last month to discontinue Ivy Bridge College, its joint venture with a for-profit education company called Altius Education.  The Chronicle writes, "Tiffin can continue offering the program to enrolled students, but 'we just can't do it through this business relationship with Alitus,' said Paul Marion, Tiffin's president, in an interview on Thursday."  According to the Chronicle, the teach-out plan at Tiffin is subject to the Higher Learning Commission's approval.

Ivy Bridge College Suddenly Announces Closing

Thousands of students pursuing associate's degrees through Tiffin University's Ivy Bridge College unit are reeling in the wake of the sudden announcement that Ivy Bridge will be closing in October.  Tiffin announced on August 1 via a post on Facebook that would be discontinuing its degree programs effective October 20.  The Toledo Blade reports that the sudden announcement regarding closure comes after Tiffin withdrew a proposal for accreditation for its Ivy Bridge programs made to The Higher Learning Commission after it became clear that it would not be supported by the accrediting body.  The forthcoming closure may affect thousands of students pursuing online programs, many of whom have incurred tens of thousands of dollars in debt.
The Googasian Firm, P.C., a Michigan-based firm that has represented thousands of students in class actions arising from school closings, is investigating the developments at Tiffin and Ivy Bridge.  If you have concerns that you wish to share with The Googasian Frim, please call 1-877-540-8333 or send an e-mail to contact@googasian.com.

Massachusetts investigates University of Phoenix

Massachusetts is investigating University of Phoenix, demanding that the nation's largest for-profit college provide the state's attorney general with data regarding its recruiting and financing practices. Massachusetts attorney general Martha Coakley, according to the Boston Globe, is investigating whether for-profit colleges use unfair or deceptive practices in the recruitment of students and the financing of their educations. University of Phoenix's owner, Apollo Group, has disclosed that that is has been asked for nine years' worth of detailed information about its Massachusetts operations.  Massachusetts also is investigating Kaplan Career Institute in Boston, which is owned by The Washington Post Co., and the Everest Institute campuses in Brighton and Chelsea, which are owned by Corinthian Colleges, Inc.

Massachusetts sues for-profit school, alleging false promises

Massachusetts is taking action against a for-profit vocational school, alleging that it falsely promised to train its students for well-paying jobs in the medical field with misleading job placement statistics.  The Boston Globe reports that Massachusetts attorney general Martha Coakley's office has sued Sullivan & Cogliano Training Centers, Inc., contending that advertisements of a 70 percent to 100 percent placement rate were false, with many graduates actually working in fast food jobs.

NYC Officials Seeks Data From DeVry, Career Education Corp.

The Chronicle of Higher Education reports that New York City Comptroller John C. Liu is calling upon DeVry, Inc. and Career Education Corporation to disclose students' loan-repayment rates and debt-to-income ratios.  These statistics are tied to one of the most widespread problems in the for-profit school industry: gainful employment among graduates.  The Comptroller's request to two of the nation's largest for-profit schools was made via shareholder resolutions.

American Career Institute Suddenly Closes

Hundreds of adults enrolled in job-training programs at American Career Institute are reeling following the sudden closing of the school.
The school's campuses in Massachusetts and Maryland closed without warning, leaving students without immediate recourse for completion of programs for which they had paid substantial tuition and devoted considerable time.
Media reports have suggested that administrators at the ACI had notice for a period of weeks regarding financial problems at the Springfield-based company, but students appear to have been kept in the dark.
Attorneys at The Googasian Firm, P.C., a law firm that has represented thousands of students affected by improper actions by for-profit schools around the country, is investigating.  If you have a concern or question about ACI's closing, feel free to call 1-877-540-8333 or contact@googasian.com.