College and University
The Illinois Institute of Art - SchaumburgFind BBB Accredited Businesses in College and University.
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Madigan Announces Settlements With For-Profit Education Management Corporation
On November 16, 2015 Illinois Attorney General Lisa Madigan announced two settlements with for-profit education company Education Management Corporation (EDMC) that will significantly reform its recruiting and enrollment practices, forgive more than $3 million in loans for Illinois students, and return money fraudulently obtained from the State of Illinois.
A consumer fraud settlement that was reached with EDMC by Madigan, attorneys general in 39 states and the District of Columbia will provide $102.8 million in outstanding student loan debt relief held by more than 80,000 former students nationwide. The settlement also requires EDMC to provide disclosure to students about the true cost of the school and expectations for job placement after graduation. It bans the school from making misrepresentations to prospective students, prohibits enrollment in programs that lack the programmatic accreditation required for state licensure or required for employment by the bulk of employers, and institutes an orientation period when new students can withdraw with no financial obligation.
The second agreement is a global agreement with Madigan, the federal government, attorneys general in 11 states and the District of Columbia, and whistleblowers. It requires EDMC to pay a total of $95.5 million, including $1.9 million to the state of Illinois to resolve alleged violations of the False Claims Act, as well as claims by the Consumer Protection Consortium. The agreement resolves allegations that EDMC illegally paid incentives to its admissions recruiters for the number of students they enrolled.
EDMC operates 110 schools in 32 states and Canada through four education systems, including Argosy University, The Art Institutes, Brown Mackie College and South University. In Illinois, EDMC operates the Illinois Institute of Art — Chicago, the Illinois Institute of Art — Schaumburg, the Illinois Institute of Art — Tinley Park, Argosy University Chicago, and Argosy University Schaumburg.
As part of the settlement, Thomas Perrelli, former U.S. Associate Attorney General, will independently monitor the company’s settlement compliance for three years and issue annual reports.
Students who will receive automatic relief related to outstanding EDMC institutional loans must have been enrolled in an EDMC program with fewer than 24 transfer credits, withdrawn within 45 days of the first day of their first term, and their final day of attendance must have been between January 1, 2006 and December 31, 2014.
For full text of the press release, along with information on potentially compromised records, please click here.Important Information
Reason for Rating - Factors Lowered
Failure to respond to 2 complaint(s) filed against business
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