AG Lisa Madigan Announces Two Settlements With For-Profit Education Company
(CBS) -- Illinois Attorney General Lisa Madigan announced two settlements today with a for-profit education company.
Some students who attended their schools will now have their loans forgiven, reports WBBM's Mariam Sobh.
Madigan says the settlements are for students who enrolled in programs run by the Education Management Corporation.
Podcast
"My office has been investigating Argosy and the Illinois Institute of Art for many years," Madigan said. "Both for violations of federal law as well as violations of Illinois consumer fraud law."
Madigan says students who attended these programs often ended up with substantial debt. In addition, she says they were victims of false advertising. Many of them were not able to get a job after taking classes or even obtain a degree.
Attorneys general in 39 other states and the District of Columbia were also part of the settlement. The Pittsburgh-based company operates 110 schools in the U.S. and Canada.
The first settlement forgives $3 million worth of loans, and the second settlement pays the state $1.9 million for violating the False Claims Act.
