The Art Institutes along with various other branches of mother company EDMC such as Argosy University, Brown Mackie College and South University have been under scrutiny for the past few years and have recently become a part of a decree from the government to forgive over $500 million dollars in loans. These for-profit schools, which receive no public funding, charge a much higher tuition and as a result the default rates on student loans are increased. Certain dubious acts have come to light such as falsified information, predatory lending, aggressive marketing, law suits, and even as far as to receive a notice of request to delist EDMC (Education Management Company) which includes the aforementioned universities and the Art Institutes from the stock exchange.
Admissions director for EDMC in Pittsburgh from 2008-2010 Jason Sobek filed a law suit against the corporation stating that the firm falsified information given to the Department of Education indicating that they were in compliance with the loan programs’ eligibility requirements. Sobek alleged that EDMC operated a “carefully crafted and widespread for-profit education scheme [in which] defendants have defrauded the United States and its taxpayers out of millions of dollars in the form of federally backed student loans and grants.Ã¢â‚¬Â His allegations included providing false information on a range of issues, including nursing program accreditation, job placement rates, cost of programs, student progress statistics, status of students who should have been dropped from the enrollment records, and employee payment issues.
Since then Nasdaq has given notice to EDMC stating its non compliance with a listing rule regarding the filing of reports with the U.S. Securities and Exchange Commission. The letter of notice (October 2nd, 2014) was sent as a result of EDMC’s delay in filing its annual financial report for the previous year. The excuse given was unresolved issues with the SEC related to revenue recognition and bad debt reserve records.
Due to illegal predatory lending the Consumer Financial Protection Bureau has demanded that more than $500 million in student loans must be forgiven. Many students are dropping out due to the high rates, the Art Institutes showed a loss of 16.3% over all in the last quarter alone of this last fiscal year, so it stands to reason that thousands are taking advantage of our service to secure forgiveness.
The Art Institutes have more than 50 campuses around the United States with a current count of around 70,000 students. If you were enrolled in one of these schools and feel you may be victim of these predatory lending practices, give us a call at (844) 500-0726