How Much Was College at the Art Institute of Hollywood

The Fine art Institutes: Fraud, Closures, and the Growing Problems of For-Profit Colleges

Published on April 24, 2019

In 2015, The Fine art Institutes operated 50 locations across the United States. Now, simply eight of those campuses remain, and they're in danger of endmost inside the next few months.

Many students and staff members first learned nigh the legal and financial woes of The Fine art Institutes when classes shut downwards without any accelerate discover. Unfortunately, this is speedily becoming a mutual story as for-profit colleges nationwide continue to shut their doors. In fact, these institutions are shuttering due to dwindling enrollment, fraud scandals, and concerns about educational quality.

What Went Incorrect at The Art Institutes?

A 2012 Senate investigation into The Art Institutes establish ample evidence of fraud, including unscrupulous tuition pricing hikes that forced students to either coughing up more money or lose their chance to graduate. The Art Institutes likewise kept a lopsided employee ratio of five recruiters for every member of their student services staff.

The Department of Justice charged the former owner of The Art Institutes, Teaching Management Corp, with $xi billion in federal funding fraud. Education Management Corp agreed to settle for $95 million to prevent further activeness confronting alleged consumer fraud and illegal recruiting tactics.

At the same fourth dimension, 39 states and the District of Columbia secured $102.8 million in educatee loan forgiveness for approximately lxxx,000 former students of The Art Institutes. Federal loans are another matter, and the Trump administration continues to collect from sometime students. In some cases, this means seizing tax refunds and garnishing wages.

New Management Hasn't Helped

Attempts to transform The Art Institutes into a feasible nonprofit haven't gained whatever ground. For instance, courtroom-appointed receiver Studio Enterprise & South University continues to struggle with the poor reputation fastened to The Art Institutes' proper noun.

Remaining campuses face dwindling enrollment and the loss of accreditation. All of which may before long become a moot point as the deadline to fully extricate The Art Institutes from the Dream Center Education It Platform is September xi, 2019. The last 8 schools volition most certainly shut their doors for expert if this deadline passes unfulfilled.

Old Students Didn't Receive a Quality Teaching

Despite swindling the federal government out of $eleven billion and having solid enrollment numbers until 2012, The Art Institutes failed to provide a quality education.

Former pupil Brandon Schultz complained that the graphic design classes were "only a bunch of beginner lessons on how to use those programs" and that he "never did any graphic design work." After graduation, Schultz couldn't pass whatever of the common tests that graphic design companies provide to potential employees.

Schultz farther complained most the schoolhouse forcing him to have out a 2nd loan before he could take his very last class. Other students claim that full-ride scholarship offers turned into student loan debt that they didn't knowingly sign upwards for.

More than 29,000 people signed a petition urging the authorities to provide loan forgiveness to anybody afflicted past these scams. On December 13, 2018, the U.Due south. Department of Education began moving forward with $150 million in forgiveness programs.

For-Profit Failures Nationwide

The Art Institutes is far from lonely. Earlier this year, Argosy University folded after becoming butterfingers from student aid programs. Another 270 for-profit colleges fell under federal cash monitoring in 2018.

Trump University's failure took identify much before, in 2010, only lawsuits surrounding the schoolhouse gained national attention in 2018. The federal authorities approved a $25 one thousand thousand settlement after widespread claims of fraudulent activities, including false advertizement.

More than 50 individual and chain colleges disappeared between 2016 and the beginning of 2019, including ITT Technical Constitute, Le Cordon Bleu Colleges of Culinary Art, and Brightwood Career Plant. Some of these chains operated hundreds of campuses, significant that a massive number of students lost their opportunity to graduate.

Statistics bear witness that for-profit colleges struggle in several areas. They have a much lower graduation rate than public and private nonprofit schools. The number of students who default on their loans is as well double that of public colleges. Additionally, nationwide for-turn a profit enrollment numbers dropped past more forty percentage since 2010.

What Can Former Students Do?

There is an epidemic of student loan debt nationwide with 44 million graduates owing almost $1.5 trillion in pupil loans. However, students saddled with high student loan debts after attention any of The Art Institutes' campuses tin can apply for debt forgiveness. Choose one of the two bachelor options to start your merits: The Borrower'south Defense to Repayment Discharges or The Closed School Student Loan Belch Programme.

How to Protect Yourself from For-Turn a profit Fraud

The Fine art Institutes committed fraud, but that doesn't hateful every non-profit school is doing the same. Still, potential students do need to take precautions to protect themselves.

• Never sign higher paperwork without reading all of it and go along copies of everything you sign.
• Read several reviews from previous students. If a college is too new to have reviews, your best move is to look elsewhere.
• Look for whatsoever legal action from previous students, the state, or the federal government.
• Ask to sit in on a class before you sign upward to better evaluate the quality of the plan.
• Make sure the college is properly accredited.

Holly Chavez is a News Columnist at Grit Daily. She enjoys sharing hot, trending news stories with her readers. Based in Atlanta, Georgia, she focuses her writing on travel, brands and  tech. Holly's professional interests include business organisation and entrepreneurship.

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