Documents released in October by the House Education Committee show that the department provided $10.7 million in federal aid to students at the 2 Art Institute of Colorado locations, the Art Institute of Michigan and therefore the Illinois Institute of Art in Chicago and Schaumburg for the 2018 spring semester. None of these campuses was fully accredited at the time.
Dream Center Education Holdings, which owns the Art Institutes and Argosy University, kept students within the dark about the status of the faculties despite instructions to spread the word, consistent with the upper Learning Commission, its accreditor. the upper Learning Commission had raised concerns about the standard of education at the campuses and downgraded their status for up to four years while reviewing the Dream Center’s 2017 acquisition of the Art Institute and Argosy campuses.
The Higher Learning Commission issued a public notice in January 2018 and notified state education agencies and therefore the Department of Education of its decision. Still, the agency continued issuing loans to Art Institute students, albeit for-profit colleges must be fully accredited to participate in federal student aid programs.
The for-profit schools’ downgraded designation as “pre-accredited” institutions prohibited them from receiving federal student aid, although nonprofit schools with an equivalent status can receive aid. consistent with letters obtained by the House committee, the Department of Education in May 2018 retroactively designated the faculties as nonprofits effective Jan. 20, 2018, the date they lost their accreditation. meaning they might receive federal student aid.
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.
Questions to Ask Yourself
Do you believe you were a victim based on any of the above practices?
Have you been at the receiving end of any of these marketing tactics?
Do you think the graduation rate from the Art Institutes misled you?
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.