HONOLULU (Legal Newsline) - Hawaii Attorney General Doug Chin says for-profit education company Education Management Corporation (EDMC) has agreed to reform its recruiting and enrollment practices and forgive roughly $183,865 in loans for 181 former Hawaii students.
“This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices,” Chin said. “EDMC’s practices were unfair to Hawaii students. This agreement will provide relief for them through loan forgiveness and ensure that EDMC will make substantial changes to its business practices for future students.”
EDMC operates 110 schools in 32 states through four education systems: Argosy University, The Art Institute, Brown Mackie College and South University.
According to the Hawaii agreement, the company must add disclosures to students including a new interactive online financial disclosure. Additionally, EDMC has been banned from misrepresenting itself to prospective students and barred from enrolling students in unaccredited programs.
“Our investigation provided a clear picture of how EDMC lured prospective students into its programs and how many students left the program with unfulfilled promises and tremendous debt,” Chin said. “This agreement addresses our biggest concerns about EDMC’s business practices and creates transparency and accountability.”
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