The accreditation for the Art Institute’s Colorado and Illinois campuses was removed by the upper Learning Commission in January 2018, round the time Dream Center took them over. The loss of certification meant that students risked being unable to transfer […]
The accreditation for the Art Institute’s Colorado and Illinois campuses was removed by the upper Learning Commission in January 2018, round the time Dream Center took them over. The loss of certification meant that students risked being unable to transfer their credits to other schools or have their credentials recognized by employers.
Officials at the Art Institutes never told students that the campuses had lost their accreditation, consistent with court filings and therefore the Higher Learning Commission.
By law, the Department of Education isn’t allowed to release federal student loan funds to for-profit schools that aren’t accredited. But the department sent quite $ 10 million to the 2 schools and, consistent with emails and other records, told Dream Center officials that it had been working to permit schools to become retroactively accredited.
The department on Friday blamed the upper Learning Commission for the mess, saying that the accreditor had harmed students by placing their schools during a “Newly developed and improperly defined” accreditation status. Dream Center was owned by a Christian nonprofit that acquired the troubled group of for-profit schools in late 2017. It closed some schools within a couple of months, and therefore the entire chain abruptly pack up barely a year later after many dollars in federal aid funds that were owed to students went missing. the cash has still not been recovered.
The Art Institutes was a subsidiary owned by the Educational Management Corporation. It was the second-largest for-profit college in the whole country. Due to illegal practices, the art institutes lawsuit led to further scrutiny of the Educational Management Corporation. In this lawsuit, the corporation faced charges for breaking several consumer protection laws.
This led to a settlement in 2015. In the wake of this settlement, Educational Management Corp agreed to pay a total of $95.5 million for fraudulent recruitment strategies and forgive student loan debts amounting to about $103 million.
As of today, the Educational Management Corporation has failed to admit any wrongdoing even after the Art Institutes lawsuit wen against it. Nevertheless, they have consented to the payment of 200 million dollars. This is good enough proof to use for a Borrower’s Defense argument. Though this might be the case, you may be ready to do more than point to the Art Institutes’ wrongdoings. The case lies in outlining how these actions affected you personally. This is the best way to guarantee loan forgiveness from the Art Institution.
However, we understand some people may still require some assistance to pinpoint some illegal activities of the Art Institutes.
According to the complaint filed in the Supreme Court of New York County, here are some alleged practices of the school that might help increase your eligibility for the art institute loan forgiveness.
Misled students concerning the benefits of degrees obtained through education at their schools.
Deployed high-pressure sales tactics to get students who would have otherwise chosen a different school
Made false claims concerning the accreditations of certain programs
Misrepresented job placement and graduation rates.
If you answer yes to any of these questions, you can plainly state it as a strong base for filing for a claim under the Borrowers Defense Program. For further clarification on the misconducts of the Art Institutes, be sure to read our post on the Art Institute lawsuits in 2019. By now, you must have made up your mind as to whether to apply or not. If yes, please on to find how to file your Borrower’s Defense Claim.