Kaplan Campus Agrees to Pay $1.6-Million to Settle Disputes

July 22, 2011, 5:57 pm

A branch of Kaplan Higher Education agreed on Friday to pay $1.6-million to settle allegations that it had not complied with federal financial-aid requirements, Dow Jones reports. The agreement does not include an admission of wrongdoing, but settles a review by the Education Department, a federal investigation, and a whistle-blower lawsuit. The suit, filed in 2007 by a former official of the CHI Institute, in Broomall, Pa., said the for-profit college had misled students about the availability of required externships in its program in surgical-technology training. Many students were unable to complete the program and subsequently defaulted on their loans, the suit said. Under the settlement, Kaplan will pay a total of $1.6-million to reimburse the federal government for certain legal fees and repay federal student loans. That total includes $225,000 that the government will pay to the former employee who filed the complaint.

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http://twitter.com/timbronsen Tim Bronsen

Kaplan cheated students and today they got what was coming to them. A good day for students but a sad day for all those in other 4profits who are getting ripped off.
willynilly

The fraudulent recruiting practices of the for-profits are now legend across the entire planet. This particular one is only a single example of the huge array of false statements made to suudents at their time of enrollment. The feds shouldn’t fine them, they should close them and follow that action with indictments.
jbfjbf

If I am not mistaken, there was a recent article where a Dean from Kaplan was fired for complaining that Kaplan “had not complied with federal financial-aid requirements.”

If he told the truth and the federal government verifies his allegation by demanding $1.6 million in *stolen* funds be returned, shouldn’t the truthful accuser get his job back (not that he would want it) and punitive damages?

Is there one single ethical, morally acceptable university in this country? Shut down every unaccredited, unethical, criminally corrupt university today.
studentperspective

And while we are at it, let the ‘recovered’ funds be applied to student loans and restore the credit rating of these students. The money may have been ultimately ‘stolen’ from the Government but it was done so trhough innocent students who thus far have recovered nothing.
studentperspective

1.6 million? They got off cheap.