Pittsburgh-based EDMC runs a “sham,” according to court documents filed today. The federal government, along with 11 states and DC, is suing EDMC for paying recruiters on commission, which schools are not allowed to do if their students are eligible for federal financial aid student loans. [Trib]
EDMC, a for-profit school based in Pittsburgh, operates 101 schools in 31 states, ranging from the somewhat respectable Art Institutes to the more dubious Argosy University and something called “South University.” [EDMC] For-profit schools have come under fire recently for making lots of money at the expense of hapless students, who get zillions of dollars in student loan debt for degrees from places like South University and various Kaplan-owned entities that do not in fact help make them employable. Oh, like law student debt! But that’s a separate issue.
Anyway, you might recall that EDMC was recently hiring an in-house attorney/fall guy to help with “ethics” and “regulatory compliance.” That person sure has his or her hands full these days.