Two For-Profits Settle with Massachusetts Attorney General

Kaplan Career Institute and Lincoln Technical Institute reached a settlement with Massachusetts Attorney General Maura Healy to resolve allegations of inflating job placement numbers and employing unfair recruiting tactics, according to a press release. The for-profit higher education providers will pay a combined $2.3 million to settle the lawsuit, with most of the money going towards helping eligible former students pay down their debt.

According to attorney general's office, the two colleges intentionally misled students, advertising job placement rates of more than 70 percent, when in reality they were materially lower. "We allege these for-profit schools lured hopeful students into enrolling in their vocational programs by promising certain careers, but only left them with substantial debt," Healey said in a written statement.

Kaplan Inc., parent company of the career institute, said in a statement it "emphatically maintains that its actions were compliant and in the best interests of students, who were well-served by the institution." The settlement did not include a finding of wrongdoing, and Kaplan said it resolved the legal challenge "due to the high cost of protracted litigation," The Chronicle of Higher Education reported.

In a separate statement, Lincoln Educational Services, which owns the technical institute, denied the attorney general's claims, but said it was "gratified that the judgment enables our former students to benefit from the $850,000 in direct funds to be distributed by the attorney general as she determines, and $165,000 in loan forgiveness."

 

Related Links

Press Release from Attorney General Maura Healy’s Office

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-07-30-for-profit-schools-settlements.html

The Chronicle of Higher Education

http://chronicle.com/blogs/ticker/2-for-profit-colleges-will-pay-former-students-2-3-million-in-settlement/102585