Continuing Education, Domestic, Ethics, For-Profit, Required, Student Loans - Written by Elbert Chu on Saturday, July 23, 2011 9:17 - 3 Comments
Kaplan Inc. Subsidiary, CHI Institute, to Pay $1.6M in Fines
by Elbert Chu, updated
CHI Institute, owned by The Washington Post Company (NYSE:WPO) through its subsidiary, Kaplan Inc., failed to provide promised educational programs to students enrolled in a surgical tech course. This comes on the heels of the announcement of a shake-up in Kaplan Inc. executives on Tuesday.
The allegations said that CHI misled students and the federal government about the number of spots available for field training necessary for students to graduate from the program.
The result, according to the allegations, was that students paid CHI for an educational program that CHI knew it could not fully handle, the U.S. Attorney’s Office said.
The majority of students in the program received some form of federal student financial aid.
Chi is a career-focused, technical and vocational institute, and is subsidiary of Kaplan, Inc., which is owned by The Washington Post Company.
The New York Times Tamar Lewin reports details of the settlement:
Kaplan, in settling the case, admitted no wrongdoing.
The settlement includes nearly $500,000 to be paid on behalf of 43 students who had taken out student loans for the program but were not able to graduate because the school, one of Kaplan’s for-profit campuses, had no placement for them.
“The money will go to the banks, to pay off their loans, so the students can get on with their lives,” said Michael J. Salmanson, the lawyer who handled the case.
One of those whose loans will be paid off is Rebecca Masci, a single mother of five, who took out loans, got her parents to baby-sit and, for three terms, excelled in her classroom work. But she was unable to graduate because the school never provided the necessary hands-on experience in an operating room.
Mr. Salmanson said other students whose loans will be paid off may not have known of the lawsuit — and may not yet know about the settlement.
Mr. Salmanson and Mr. Goodstein will receive $225,000 of the settlement money.
CHI Institute: Super Fishy.
Leave a Reply
We welcome Tips & Pitches
Latest WA Original Features
The Pulitzer Prize winning investigation newsroom digs into for-profit education.
- Interview: UoPeople Founder Shai Reshef On Edu Tech, Free Tuition & P2P Learning
- Cheating in School— How the Digital Age Affects Attitudes About Plagiarism [Infographic]
- U of Phoenix: Raises tuition, Enrollment drops, Still Making Plenty of Cash
- Guest Column from Hansoo Lee of Magoosh.com: SAT Scores are Falling – Now What?
- Edublog Award Winners For Mobile App, Web Tool, Wiki Tool
MARKET INTRADAY SNAPSHOT
- Education & Tech Companies We Follow
Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments
More In For-Profit
- Heard: MOOCs Growing From Stanford to Georgia Tech to MIT to Udacity and Udemy
- Heard: California Applies Headlock, Begins Clamp Down On For-Profit Colleges
- Heard: Capella University On The Ropes But Planning For A Comeback In Round 4
- Hungry Hippos: For-Profits Gobble Up Half of Military Education Benefits
- Researchers Find Students At For-Profit Colleges More Likely To Be Unemployed
Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments
More In Technology
- Opinion: Online Tutoring Disrupting Traditional Tutor Model, But Expanding The Tutor Industry
- The “Mathlash”: Mathmeticians Strike Back Against Silicon Valley’s Foray Into Math Edu
- Shantanu Sinha of Khan Academy Explains The Gamification Approach of Khan
- Fast Company Ranks The 10 Most Innovative Education Companies
- Must See: Interactive Tour of the Universe — Online Tool for Teachers and Gawkers
Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments
More In Friend, Fraud, or Fishy
- Infographic & Video: Is America Witnessing A Growing Education Bubble? Part II Of II
- Investigative Opinion: For-Profit Kaplan University’s $250 Million Payout To Former Executives
- Heard: Mitt Romney Takes Money From, Offers Praise To Full Sail University Leaders
- Heard: New York Attorney General Is Investigating Pearson Education – NYTimes.com
- Guest Column: A Response To Occupy Wall Street’s View Of Student Debt