Shaun joyce wont to sit at his desk at The Art Institute of Charlotte in North Carolina, on edge. That’s because a staffer could burst into his classroom at any moment and lead him on the “walk of death.” That […]
Shaun joyce wont to sit at his desk at The Art Institute of Charlotte in North Carolina, on edge. That’s because a staffer could burst into his classroom at any moment and lead him on the “walk of death.”
That was when students would be summoned to the for-profit school’s aid office and told they’d “run out” of loans, Joyce said. Then the scholar would be told that he or she needed to borrow extra money immediately, alternatively leave the varsity …
“You never knew if you were returning , ”Joyce, now 29, said.
On his thanks to pursuing his bachelor’s degree in web design and interactive media at the Art Institute, a former unit of Education Management Corp., which was partially owned by Goldman Sachs at the time, Joyce received such an ultimatum. At one point, there have been some 50 Art Institute campuses operational …
Scared the varsity wouldn’t allow him to finish his degree, he signed up for an additional loan. But, realizing how unaffordable the varsity was becoming, he also decided to go away the program after two years rather than the four years he’d planned on.
The tab for his two-year associate’s degree is almost $ 90,000.
“I switched right down to an associate’s degree. Why is it this expensive? ” he recalled telling the Art Institute staff at the time. ”’I’m paying quite what was quoted to me for a bachelor’s degree. ‘”
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.
ccording 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.