Vermont Business Magazine Attorney General William Sorrell joined with 38 other states and the District of Columbia in filing asettlementwith Education Management Corporation today. The agreement requires the for-profit college company to forgive $102.8 million in outstanding loan debt held by more than 80,000 former students, including $60,000 in loan forgiveness to 67 Vermonters.EDMC, based in Pittsburgh, Pennsylvania, operates 110 schools in 32 states and Canada through four education systems, including Argosy University, The Art Institutes, Brown Mackie College and South University. The company was accused of misrepresenting job placement rates and graduation rates, using high pressure sales tactics, and misleading prospective students about costs and expected post-graduation incomes, in thecomplaintfiled with today’s consent judgment.
The settlement mandates added disclosures to students, including a new interactive online financial disclosure tool; bars misrepresentations to prospective students; prohibits enrollment in unaccredited programs; and institutes an extended period when new students can withdraw with no financial obligation. Thomas Perrelli, former U.S. Associate Attorney General, will independently monitor the company’s settlement compliance for three years and issue annual reports.
The investigation was led by the Attorneys General of Connecticut, Illinois, Iowa, Kentucky, Oregon and Pennsylvania.
Vermont AG: Nov 16, 2015