Separately, EDMC also agreed with state attorneys general to forgive $102.8 million in unpaid loans of former students. Loans of current students aren’t affected by the settlement. The settlement also includes agreement to increase transparency in the recruiting process and to avoid compensation based on number of new students enrolled. The settlement includes agreement to be more transparent in recruiting in terms of completion and post-graduation prospects.
Taxpayers deserve better stewardship of their resources, and students deserve a better return for their time and effort.
See The Student Debt Crisis for more details about the questionable practices of some schools that contribute to the growing problems around student loans.