Nearly 5,000 Ohio residents are expected to be reimbursed more than $ 12 million in debt to a for-profit university provider accused of misleading students or withholding information about costs and other details of its programs.
Ohio Attorney General Mike DeWine on Thursday announced a multi-state agreement with the provider, Career Education Corporation. The company is expected to forgo recovering nearly $ 494 million in debt from former students. The settlement includes Ohio and 47 other states, the DeWine office said in a press release.
Career Education Corporation operated several schools and brands, including Sanford-Brown, Le Cordon Bleu, the International Academy of Design and Technology, Briarcliff College, Brooks Institute, Brown College, Harrington College of Design, and Missouri College.
The company reportedly pressured its employees to enroll students and misled or withheld information about registration costs, placement rates, the ability to transfer credits and the ability to pay. lack of accreditation of some of its programs.
The regulation also includes recruitment and registration practices that the Career Education Corporation must adopt. The requirements include the disclosure of information about the expected costs of a program, the placement rate and the median earnings of graduates, the fact of not enrolling students in programs without accreditation required for jobs in their field and allow undergraduate students under 24 credits to retire among the top 21. days of the program, among others.
"This settlement will provide debt relief to thousands of alumni and will require the Career Education Corporation to take specific steps to help prospective students make informed decisions about their education," DeWine said in a statement. press release announcing the regulation.
Many schools in the society have been closed down or have been removed. It currently offers mainly online courses through the American InterContinental University and Colorado Technical University.
Eligible former students should receive information on debt relief over the next 60 days. Debt relief does not apply to federal student loans or private loans issued by entities other than Career Education Corporation.