For-profit education companies, such as, EDMC have been under extreme fire for a while for reportedly preparing students for a career that will not justify the expensive tuition. The Education Management Corporation, an operator of for-profit colleges that include almost 50 Art Institute schools across the U.S. and Canada, will be forgiving 80,000 student loans to bring a consumer fraud investigation to a close, and pay $95.5 million to settle a lawsuit regarding recruitment methods, stated by the U.S. Department of Justice and various press reports.
The Justice Department said the $95.5 million settlement “reflects EDMC’s financial condition and current ability to pay.” Had the lawsuit gone to trial, EDMC could have been liable for penalties it would have been unable to pay.
In response to the closures, Chris Hardman, the VP of communications with EDMC, issued this statement to First Coast News:
“The Art Institutes have made the decision to not accept new enrollments into its programs at its Art Institute of Jacksonville location. The location, which is a branch of Miami International University of Art & Design, remains committed to assisting currently enrolled students in successfully completing their programs of study and will continue to offer courses, student services and placement assistance until the last student has graduated.
“Our primary concern is ensuring that currently enrolled students receive a high quality education that will equip them with the skills and expertise they need to earn a meaningful return on their educational investment.
“There are approximately 375 students at Ai Jacksonville, and we expect the school to remain open for 2-3 years. We intend to fulfill our commitment to help our students achieve their education and career goals, putting them on the path to a life of creativity.
“We continue to take a comprehensive and strategic examination of our schools and programs to ensure we are fully focused on providing the best student, graduate and employer outcomes. As a result of that examination – and as the next step in our transformation – we, together with the respective local boards of trustees, have made the difficult decision to cease new enrollments at 15 locations of The Art Institutes.
“As difficult as this decision to teach-out these 15 Art Institutes has been, it is clearly a step that will help us create a stronger organization that is better positioned to provide the educational value our students expect and deserve.”
The Art Institute of Jacksonville told its students they’ll help them in any way possible. They held an open meeting to answer questions, but there are still a lot of questions that ultimately can only be answered from those at the very top level. If you have any questions regarding student loan forgiveness programs connect with us HERE and we would be happy to clarify any of your un answer questions regarding student loan forgiveness options.
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