The Art Institutes: Legitimate Photo Schools or Accessories to Fraud?

by JamesNYCAugust 31. 2011 04:54

Funny that after I've been saying this about photo schools for the past 20 years it takes a law suite for people to alert people.

The Art Institutes: Legitimate Photo Schools or Accessories to Fraud?

by David Walker

A lawsuit against the nation's second largest operator of for-profit colleges has cast a spotlight on the company's recruitment practices and ethics, including those of a chain called The Art Institutes, which offers degree programs in photography and more than 55 other creative fields at more than 45 locations around the country.

Earlier this month, the US Department of Justice sued Pittsburgh-based Education Management Corporation, which is 41 percent owned by investment bank Goldman Sachs. The government has charged  the company with fraudulently collecting $11 billion dollars in state and federal student financial aid between July of 2003 to June of 2011. EDMC allegedly collected $2.2 billion of that money in 2010 alone. That amounted to almost 90 percent of the company's 2010 revenues.

The government says EDMC violated federal rules against paying recruiters based on the number of students enrolled. Those rules are designed to prevent colleges from recruiting unqualified students just to collect student aid money.

Read the whole story at PDN online

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