Settlement with Education Company Affects Nearly 400 Idahoans
(KLIX) – Idaho and 48 other states recently won a court case with an Illinois-based for-profit education company.
The result of the settlement with Career Education Corp. waves some $493.7 million in debts owed by more than 179,000 students across the country, according to Idaho Attorney General Lawrence Wasden.
In Idaho, some 388 students in the Gem State will get relief totaling around $862,562. Nationally, the average individual debt relief will be about $2,750.
“I’m pleased to announce that CEC has agreed to change its recruiting and enrollment practices and forego debt collection for students in Idaho and other participating states,” Wasden said in a prepared statement.
“For years, this company was less than honest with students and prospective students about the costs and other important aspects of their higher education. Doing away with these debts is the right thing to do.”
The settlement ends an investigation that began in 2014, when a group of attorneys general launched an investigation into the education company.
They alleged that the company pressured its employees to enroll students and engaged in unfair and deceptive practices, which included making misleading statements or failing to disclose information to prospective students on total costs, transferability of credits, program offerings and job placement rates. As a result, according to the news release, some students could not obtain professional licenses and incurred debts that they could not repay nor discharge.
CEC also has agreed to pay $5 million to the states. Idaho’s share of the settlement is $75,000, which will be deposited into the Consumer Protection Fund.