For Immediate Release
January 3, 2019
Kate Spiner, Director of Communications
Concord, NH – Attorney General Gordon J. MacDonald today announced that for-profit education company Career Education Corp. (CEC) has agreed to reform its recruiting and enrollment practices and forgo collecting approximately $493.7 million in debts owed by 179,529 students nationally. New Hampshire joins 47 States and the District of Columbia in the settlement.
CEC agrees to forgo any and all efforts to collect amounts owed by former students living in the states participating in the agreement. In New Hampshire, 1,572 students will get relief totaling $4,635,685.31. CEC has also agreed to pay $5 million to the states and New Hampshire will receive $50,000.
CEC is based in Schaumburg, Ill., and currently offers primarily online courses through American InterContinental University and Colorado Technical University. Its brands have included Briarcliffe College, Brooks Institute, Brown College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford-Brown. CEC has closed or phased out many of its schools over the past 10 years.
A group of attorneys general launched an investigation into CEC in January 2014 after receiving several complaints from students and a critical report on for-profit education by the U.S. Senate's Health, Education, Labor and Pensions Committee. Complaints centered on unfair and deceptive practices by students enrolled in CEC who would not have otherwise enrolled, could not obtain professional licensure, and were saddled with substantial debts that they could not repay nor discharge. That investigation revealed evidence demonstrating that:
CEC has agreed to forgo collection of debts owed by students who either attended a CEC institution that closed before Jan. 1, 2019, or whose final day of attendance at AIU or CTU occurred on or before Dec. 31, 2013.
Former students with debt relief eligibility questions can contact CEC: www.careered.com/About-Career-Education/Contact-Us
New Hampshire Department of Justice
33 Capitol Street | Concord, NH | 03301