The state Attorney General’s Office and Department Consumer Protection have announced a joint settlement with 38 other states and the District of Columbia in a national settlement with the Education Management Corp. The for-profit educational institution will have to revise how it recruits and enrolls students.
Connecticut’s share of the settlement will allow an estimated $364,990 in loan forgiveness for 337 former students. The agreement is expected to provide an average of $1,370 per person in loan forgiveness. Nationwide the settlement forgives more than $102.8 million in outstanding loan debt held by more than 80,000 former students.
EDMC, based in Pittsburgh, Penn., operates 110 schools in 32 states, under various names including Argosy University, The Art Institutes, Brown Mackie College and South University.
The agreement 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.
After receiving numerous complaints from current and former EDMC students, state attorneys general initiated a multi-state investigation in January of last year. Attorneys and investigators reviewed consumer complaints, reviewed company documents, and interviewed former EDMC employees. Connecticut helped lead the investigation and will be a member of the six-state executive committee that will have continuing responsibility to enforce the agreement.
