Offers poured in. Students who are enrolled when an institution closes or withdraw no more than 120 days before a closure are eligible for this kind of loan forgiveness. "Should they fail to agree, the plan of reorganization will likely fail, thereby dooming South University and the Art Institutes". To note that accreditation ceased on March 13, 2019. First, before deciding on a university, potential students need to check the quality of their education and the existence of accreditation. The Dept. The Art Institute's accreditation was revoked by the United States Department of Education in September 2016. Subscribe to Higher Ed Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, By Natalie Schwartz, Jeremy Bauer-Wolf and Laura Spitalniak , Inc. Magazine Ranks TimelyMD Fastest-Growing Company in Fort Worth, 16th in Southwest Region, APUS Continues to Support Students Well-being through Partnership that Enables 24/7 Access to, American Public University Systems Sports Management Programs Earn Specialized Accreditation , EdTech Company Expands Learning Community Offerings to Boost Retention from Admission to Gradu, By signing up to receive our newsletter, you agree to our, Four students are suing the nonprofit Dream Center Education Holdings (DCEH), alleging the college operator misled them over the accreditation of four Art Institutes, according to the, The suit alleges DCEH stated in its course catalog that it remained accredited this year after its accreditor, the Higher Learning Commission, pulled accreditation in January, and students didn't find out the status until June, the Post-Gazette reported. If youre looking for levity, look no further. Borrowers are normally eligible to ask for debt forgiveness if they were enrolled, on approved leave, or had withdrawn within four months of their college closing. The decision stems from a lawsuit brought in October by former students at the Art Institute of Colorado and the Illinois Institute of Art against the department and Education Secretary Betsy DeVos. Career Education Review is THE career education information source dedicated to providing top management, owners, sector leaders and suppliers with the in-depth information required to operate a successful educational enterprise and to provide a life-changing education experience for the students served by the sector. A student should provide emails with the university officials, brochures where false advertisement claims were mentioned, etc. Education Department spokeswoman Angela Morabito said Thursday that the agency maintains that the schools remained accredited through the change in ownership. 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In the new agreement, some Art Institute students will have their debts canceled through the Education of Departments closed-school discharge program, the Washington Post reports. The former students have argued that they should not be forced to repay loans that were issued unlawfully. All rights reserved. However, there still exists a considerable number of students suffering from their educational loans. In addition, it claims to have cheated students out of almost $100 million in student loans. "[73], In May 2013, a federal judge in Pennsylvania rejected a bid to dismiss a lawsuit against EDMC by a former EDMC employee. They recruited me over the phone back in 2018. The foundation saw opportunities to combine the colleges with its other charitable programs, such as by offering GED programs on campuses, providing scholarships and connecting graduates to jobs through the, The Art Institutes' sale appears to be behind the accreditation problems. This has left thousands of people buried in debt and unable to pay back their loans. In January 2019, The Washington Student Achievement Council suspended AI-Seattle's license to operate, which blocks enrollment of new students. CER gives organizations the opportunity to reach hundreds of CEOs, presidents, owners and other top management leaders in the career education sector. 2023 Colorado Public Radio. Thousands of former students of the Art Institutes claim they have been deceived and misled by the schools and their recruiters and have filed claims with the US Department of Education. The students that these institutions defrauded deserve relief, and extending the eligibility period is the right thing to do, said a statement from Sen. Bennet. Federal Court Denies Dream Center Executives' Motions to Dismiss in Class Action Lawsuit Brought By Former Art Institute Students. Last November, Education Secretary Betsy DeVos said the department would cancel about $11 million in federal loan student debt for loans taken out between Jan. 20, 2018 and when the Art Institute campuses closed in December of that year. Previously, there was an Art Institute lawsuit because of deceptive marketing tactics through inflated job placement ratings. Borrowers must apply for a closed school discharge. [77] On September 24, 2016, the Attorney General of Massachusetts expressed concern that the teaching duties at NEIA were being taken over by an unlicensed Indian company with no background in teaching US art students. Pittsburgh? Expanding the eligibility window back to January [2018] means justice for more students, Eric Rothschild, an attorney at the National Student Legal Defense Network who is representing the students, said in a statement. The AG's Office stated that if a proper education for NEIA students could not be ensured, that NEIA should shut down at the end of the 2016. [44], The Art Institutes' former parent company, Education Management Corporation (EDMC), was headquartered in Pittsburgh, Pennsylvania. The agency has agreed to expand the period of eligibility for former Art Institute students to have their debts canceled through the departments closed-school discharge program. For more information, please see the Commission's Teach-Out Plans and Agreements Policy and Procedures. The plaintiffs accuse the agency of providing loans even though Education Department officials knew the schools were not accredited and, as a result, ineligible to receive such aid. Student Defense and Edelman Combs Latturner & Goodwin, LLC filed a class-action lawsuit on behalf of students who were misled by the Dream Center and the Illinois Institute of Art (IIA), a college with campuses in Chicago and Schaumburg, Ill. ", On Thursday, the department confirmed that it has extended that window to the date that the Colorado and Illinois schools lost their accreditation. Formerly known as the National Student Legal Defense Network, the group gathered documents that showed the department allowed the distribution of Title IV student aid funds to these schools after they lost accreditation, which is illegal. While the Obama Administration did not approve this transaction, the Secretary of Education Betsy DeVos approved it. Your email address will not be published. It was unclear whether the Art Institutes were accredited until the lawsuits were filed. The Higher Learning Commission had raised concerns about the quality of education at the campuses and downgraded their status for up to four years while reviewing the Dream Centers 2017 acquisition of the Art Institute and Argosy campuses. contact us / faq. In October 2019, a group of former students of the Art Institute of Colorado and Illinois brought a case against the Department of Education and Secretary Betsy DeVos. On view in NYC. We can help you keep up. [68], From 2011 to 2015, EDMC was involved in a United States Department of Justice investigation and lawsuit alleging both illegal recruitment practices by EDMC schools, including The Art Institutes, and fraudulent receipt of $11 billion in federal and state financial aid money. In the letter, also signed by Illinois Democratic Sens. and the Art Institutes. ", The Art Institutes network has recently experienced a steep decline in campuses, with a quarter of the footprint it had three years ago, according to the Post-Gazette, which noted in an August article the colleges "promised the prestige of an art school with the practical skills of trade school meant to propel people into good-paying, middle class jobs.". [45], EDMC's initial public offering (IPO) was in 2009. This apparently came as quite a surprise to the nearly 20,000 students enrolled in ECA's schools, which included Virginia College, Brightwood College, Ecotech Institute, and Golf Academy of America.