Allegations specific to AIU include reports that the Los Angeles campus misrepresented its programs and classes, made a practice of admitting students who had not graduated from high school, and included in its enrollment numbers students who had never attended class. 38 at 31-32.) denied, 537 U.S. 1105, 123 S.Ct. ATLANTA (CN) - A federal judge dismissed two of three fraud claims against American InterContinental University, saying previous lawsuits put the government on notice that the for-profit institute may be lying to maximize federal funds. [27], AIU offers associate's, bachelor's and master's degrees in a variety of fields. Hendow, 461 F.3d at 1174. They argue that the Complaint is devoid of allegations that AIU violated any statute or regulations, had knowledge of noncompliance, or submitted any claims for payment. Technical University, Inc., and Colorado Tech, Inc., that are described below, Career Education Corporation dominated or controlled those acts and practices, knew or approved of those acts and practices, and/or benefitted from those acts and practices. [44], American InterContinental University was ranked No. For details on how exactly to handle this process, please visit my Guide on the Borrowers Defense to Repayment Program, here. The college also rewarded its recruiters with bonuses based solely on the numbers of students they enrolled, a violation of the Higher Education Act, the suit said. I was able to find a report about a whistle blower lawsuit that was filed by 4 former employees stating that the school was commiting fraud. Required fields are marked *. From our perspective, the lawsuit will play an essential role when you look at the more significant student loan crisis. address: 7379 Hwy 95A North Molino, Florida 32577. [28], In 2009, My Unique Student Experience (M.U.S.E.) However, the court concluded that fraud at any layer is actionable "[i]f a false statement is integral to a causal chain leading to payment." [12] This restriction was lifted in January 2007. 1094(a). These false statements were allegedly made in the "Program Participation Agreement" ("PPA") between Defendant AIU and the DOE and in connection with each specific request for Pell Grant or Stafford Loan funds made by Defendants to the DOE. The company was previously known as Career Education Corporation. U.S. District Judge Richard Story rejected claims accusing the for-profit university of violating the ban against incentive-based compensation for enrollment 2002) (internal quotations and citations omitted), cert. Call your student loan servicing company and ask them. A for-profit university called American Intercontinental University will no longer collect student loans according to the lawsuit against the University. At AIU, you can enjoy the following benefits: Choose from 45+ Associate, Bachelor's or Master's degree programs and specializations. If youve already paid off your loans then youre probably out of luck. Plaintiffs contend that the PPA submitted by AIU to the DOE on March 2, 2007 contains materially false statements regarding AIU's compliance with the incentive compensation ban and the requirements imposed by SACS stated above. Fax: (866) 266-2781 In their Response, Plaintiffs recount specific allegations in the Complaint that state with specificity the alleged fraudulent acts of Defendants. [17] The VA withdrew its threat of sanctions in July 2020. I saw that they had a class action suit for AIU to discharge their student loans for those that had loans directly with the school but for the 90% of us that does have both fed and private loans that AIU pulled from Navient, I dont think it does us much justice. [39][40], In 2013, AIU's Master of Education (M.Ed.) 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The federal government declined to intervene in the case. In my opinion, this is a huge step in the right direction for college disclosure rules, and hopefully itll set a precedent that other schools will also be forced to comply with, as these sorts of things could definitely make a big impact on the wider student loan debt crisis. This resulted in the government not getting what it bargained for.. The more people who see the site, the more time I can spend on updating it, and the more value these Guides will offer to people just like you! From now on, the University should present a document to potential students who mention several essential information about the degree. 02-14429, 2003 WL 22019936 (11th Cir. It is an excellent opportunity for borrowers who took a loan from Career Education Corporation for attending American Intercontinental University. Steve Bostic bought the school in 1996 and changed its name to American InterContinental University. AIU offers online and on-campus education. NCA-HLC president Sylvia Manning responded that this accusation was "flimsy" because it focused on a single accreditation issue involving a single school. ): Concentration in Instructional Design and Education Technology, Information Technology (MSIT): Concentration in Cybersecurity, Information Technology (MSIT): Concentration in Data Analytics, Information Technology (MSIT): Concentration in Database Architecture and Design, Information Technology (MSIT): Concentration in Healthcare Informatics, Information Technology (MSIT): Concentration in IT Management, Information Technology (MSIT): Concentration in IT Security, Information Technology (MSIT): Concentration in Military Defense, Choose from 45+ Associate, Bachelors or Masters degree programs and specializations, Our online college classes that can be tailored to deliver the schedule flexibility you want, One-on-one support from knowledgeable faculty with real-world experience in their field. I cant say anything about any particular school. The U.S. Department of Education, Office of Inspector General questioned the Higher Learning Commission's decision to approve accreditation of AIU based on the examination of the commission's standards for measuring credit hours and program length. Only Direct Student Loans will manage to qualify for the program. The Court finds that Plaintiffs' allegations satisfy Rule 9(b). If your loan is from Federal loan programs, then you will not be able to qualify for fully discharge or forgiveness. Defendants' representations in the PPA may serve as the basis for liability under the FCA. InGraves, the court held that certification of compliance with the incentive compensation rule was not a condition of payment, but was only a condition of eligibility. No. Phony Ad using Ellen DeGeneres "[11], On June 21, 2005, the U.S. Department of Education put a freeze on approving CEC's new applications for additional campuses or acquisitions while it examined the company's financial records and compliance with federal student aid regulations. If you need immediate assistance, my advice is to contact your loan servicer, or the Federal Student Aid Information Center, at 1-800-4-FED-AID. Thank you for visiting Forget Student Loan Debt, and please do make sure to come back soon to check for updates, as I will update this Guide as soon as more details about the lawsuit settlement and forgiveness process are released. John Kline currently serves as president of California Southern University. 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