The Georgia Appellate Court denied the class action, stating that each student must file a separate claim. Student Outcomes Defendants seek to dismiss the Complaint pursuant to Rules 12(b)(6) and 9(b) of the Federal Rules of Civil Procedure. In their Response, Plaintiffs recount specific allegations in the Complaint that state with specificity the alleged fraudulent acts of Defendants. [6] Also in 2009, the school has 54 full-time instructors and 594 part-time instructors. Dont give up on the debt; if you were mislead, false advertised to, defrauded then you have a legitimate claim to get your debt discharged! The online program began in 2001, but was recognized as a separate campus in 2002. According to theclass-action lawsuit against American Intercontinental University, AIU has misled potential students. AIU offers classroom instruction in person at the ground campuses and online via the Virtual Campus, or a hybrid of both. [12] This restriction was lifted in January 2007. The week before SACS visited AIUs campus in 2007, the university set out to deceive the agency, the suit said. The school opened several other campuses in subsequent years. Full title:UNITED STATES OF AMERICA, ex rel. Its POSSIBLE to get a refund via BDAR, but highly unlikely. From what I remember during my campus tour visitation back in 2003, the rep told me it would be around $25-30K for the 4 year program. We do not claim to represent any government agency. Thanks Again! (Dkt. My recommendation to any AIU student with Federal student loan debt is to immediately submit a BDAR discharge application, using the details of this lawsuit and the ruling against AIU as the evidence that fraud was committed against you, and clearly documenting what sorts of misleading or false claims the school made in order to convince you to borrow money to cover their tuition. The American Intercontinental University (AIU) is currently facing a lawsuit that alleges the school has been issuing degrees to students who have not met the necessary academic requirements. Students do not need to pay any debt if they qualify for the program. Today I still have not gotten a graduation or degree even after I completed all the requirements. According to Department of Education data, American Intercontinental University's graduation rate for first-time, full-time online students is just 28 percent, with starting salaries for graduates ranging from $18,000 to $43,000. We want to mention that American Intercontinental University is not closing. As a result, the audit was signed off in June 2008. CEC allegedly provided false information to investors regarding the number of qualified students attending its schools. In Hendow, the Ninth Circuit Court of Appeals found the Seventh Circuit's reasoning "persuasive." The online campus offices are located in Schaumburg, Illinois, a northwest suburb of Chicago. American InterContinental University Announces Plan to Teach-Out Programs at Los Angeles Campus, Southern Association of Colleges and Schools, Accreditation Council for Business Schools and Programs, List of colleges and universities in metropolitan Atlanta, "College Navigator - American InterContinental University", "American InterContinental University London Institutional Audit MAY 2005", "Career Education Corp. Buys Online University", "Perdoceo Education Corporation: Department of Education Defers $39 Million in Title IV Money", The student trap: As American InterContinental University fights to keep its accreditation, students on the Buckhead campus wonder if they've received the education they paid for, "Steve Bostic Sends Letter to Career Education Corporation Stockholders, PR Newswire, May 6, 2005", "Promises and Profits - A For Profit College Is Under Investigation For Pumping Up Enrollment While Skimping On Education", "U.S. Department of Education lifts growth restrictions", "Heightened Cash Monitoring | Federal Student Aid", "VA to suspend some GI Bill enrollments, holding back more than $200 million from 'deceptive' universities", "VA backs down from plan to suspend University of Phoenix and other colleges from accessing GI Bill benefits", "133 for-profit colleges get more than 90 percent of their revenue from taxpayers", "Prime Piece of Peachtree Hits The Market", "Online Education | Online Learning at AIU - American InterContinental University", "Study at a London University, with the American Intercontinental University for business administration, MBA, fashion, interior design, media production and visual communication", "Campus Locations | AIU - American InterContinental University", "Computerworld Honors Program - 2009 Finalists", "Career Education - Investor Relations - Press Release", "American InterContinental University Launches intellipath Adaptive Learning Technology", "American InterContinental University Launches intellipath MBA". [28], In 2009, My Unique Student Experience (M.U.S.E.) I was able to find a report about a whistle blower lawsuit that was filed by 4 former employees stating that the school was commiting fraud. Patients made into prostitutes and sex slaves, bilking insurance companies out of millions Sac_County Iowa Prosecutor Ben Smith pays $750,000 to settle Ripoff Report 1983 civil rights lawsuit.. Federal Judge stops prosecutors abuse of power against ED Magedson Founder of Ripoff Report Ripoff Report Investigates! In 2019, BDAR remains the most effective program to eliminatestudent loans. We recommend all students to apply for theBorrowers Defense Discharge (BDD) program. 1:08-CV-2277-RWS (N.D. Ga. Jun. 3729. Ok, well then the good news is that you will be able to try and take advantage of Federal Loan Forgiveness Programs, like the Borrowers Defense to Repayment Program and the Closed School Loan Discharge Program. The people working in these agencies deal with student debt every day. "Rule 9(b)'s directive that the circumstance constituting fraud or mistake shall be stated with particularity does not permit a False Claims Act plaintiff merely to describe a private scheme in detail but then to allege simply and without any stated reason for his belief that claims requesting illegal payments must have been submitted, were likely submitted, or should have been submitted to the Government. Financialgid is an independent blog specializing in finance, savings, and other related topics. program became one of the first fully online programs to be granted initial two-year accreditation by the Teacher Education Accreditation Council (TEAC). In support of their position, Defendants primarily rely on U.S. ex rel. I also have private student loans from Natl Collegiate in relation to AIU. The best part of the class-action lawsuit against American Intercontinental University is that in the end, the parent company has admitted its fraud actions against students. Especially if you were having a hard time with astudent loan repaymentplan, you would erase all your debt. For Colorado Tech, the graduation rate is 25 percent, with salaries ranging from $23,000 to $72,000. AIU's faculty bring a wealth of experience directly into your coursework. Credit: Natrice Miller / Natrice.Miller@ajc.com, Credit: Curtis Compton / Curtis.Compton@ajc.com, Woman accused of spraying fire extinguisher inside Hartsfield-Jackson airport, Bradleys Buzz: The Braves havent made huge offseason noise, and thats fine, Centennial football coach OSullivan resigns, Ivy League dean: We cant admit students by random lottery, State hellbent on ending hotel placements for foster children, Atlanta Councilman proposes refund program for overpaid water bills, Clayton County sets qualifying fee for election to replace Victor Hill. Should I back out before they get any funding? Last month, a federal judge in Atlanta unsealed the case after the U.S. Attorneys Office allowed the parties to proceed on behalf of the U.S. government. Thanks so much for creating this! It employs open admissions and is owned by Perdoceo Education Corporation. [25] In June 2008, The Quality Assurance Agency closed an audit[43] published in May 2005 based on an examination of the London Campus in 2004. The U.S. Department of Education, Office of Inspector General questioned the Higher Learning Commission's decision to approve accreditation of AIU based on the examination of the commission's standards for measuring credit hours and program length. In this case, however, the parent company is getting slammed, the schools will have to change their recruiting tactics, and it sets a great precedent for States Attorney Generals or Class-Action Lawyers to put together cases against the other big for-profit companies who continue to leech funds from unsuspecting borrowers. No. See 31 U.S.C. Copyright 2013 Allison Legal Law Firm. But the odds of making that work are so difficult that I dont think its worth pursuing. How to find UGA championship pages and souvenirs from the AJC. McCarthy Law will negotiate with your lender to settle your private loans for much less than you currently owe (typically 40%), then get you a new loan for the lower, settled amount so you can pay off the old loan, repair your credit and reduce your monthly payments. In my opinion, this is a huge step in the right direction for college disclosure rules, and hopefully itll set a precedent that other schools will also be forced to comply with, as these sorts of things could definitely make a big impact on the wider student loan debt crisis. AIU Atlanta's campus now features an industry-current forensics lab; a virtual firearms training simulator (FATS) lab; drawing studio; dedicated math, science and writing labs; and newly redesigned studios for fashion design, media production, visual communications and interior design. American InterContinental University, a for-profit college with campuses in Atlanta, has defrauded federal grant and loan programs and the agency that approved its accreditation, a. But students need to consolidate them into a direct loan for being eligible. A blog that will help you in every financial situation. [6] More than 80 percent of AIU students attend AIU Online, an internet-based online campus that delivers degree programs 100 percent online. [14] In Diallo versus American Intercontinental University, students filed a class action lawsuit claiming that the school had defrauded them. Scam schools. M.U.S.E. Finally, no one yet knows how this will all play out, as the details of the lawsuit were just announced and we havent yet been told when the loans will be cancelled, whether or not refunds will be issued, or even how borrowers will be notified that their loans are being forgiven, so youre going to need to follow this story for updates. 2002) (internal quotations and citations omitted), cert. The lawsuit alleges that AIU enrolled students who couldnt read and some who had no high school diploma. Many instructors are professionals in their field and draw from their real-world experience to enrich classroom instruction and career training. The Southern Association of Colleges and Schools, which accredited AIU, put the university on probation in 2006 and 2007, for awarding recruiters and enrolling students without a high school diploma or an equivalent. I hope there is a chance these for-profit schools are so deceitful. Then come back and let me know and Ill try to offer you some advice. 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