CHRONICLE OF HIGHER ED: 2 For-Profit Colleges Will Pay Former Students $2.3 Million in Settlement
Career College Central Summary:
Kaplan Career Institute and Lincoln Technical Institute will pay a combined $2.3 million to former students to settle claims by the Massachusetts attorney general, Maura Healey, that the two colleges intentionally misled students. Specifically, Ms. Healey says the colleges advertised job-placement rates of more than 70 percent, when in reality they were much lower, and used unfair recruiting tactics to attract prospective students.
“We allege these for-profit schools lured hopeful students into enrolling in their vocational programs by promising certain careers, but only left them with substantial debt,” Ms. Healey said in a news release.
In a statement, Kaplan Inc., which owns the career institute, said “there was no finding of wrongdoing” in the settlement. “Sadly, in the world of business today, it is often less damaging to settle such a matter even when there is no wrongdoing,” said Janice Block, the company’s chief legal and administrative officer, in the release.
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CHRONICLE OF HIGHER EDUCATION