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Career Education Corporation is one of the leading
up corporations it's an umbrella under which many for-profit colleges exist
recently they have agreed to a settlement with the state of New York
and that settlement is the largest settlement a for-profit colleges ever
paid its ten million dollars
the reason why they did that is because %uh they were being sued by the
District Attorney I'm sorry up the Attorney General in New York
at four misleading recruiting practices they were basically telling students
that the job placement was much higher than it really was in fact the
settlement claims the company advertised job placement rates a 55 percent to
eighty percent added schools in New York when the placement rates were actually
24 percent to 64 percent so what would happen what
what would happen was that students would goin' they would be told
are you to graduate any look at this we place you want a great job you're gonna
make great money it's going to be
awesome right they were alive so the students would take out a student loan
debt thinking him getting a quality education
often times a week in education something that wouldn't even allow them
to go get testing for licensing in the field that they wanted to be in
and then they were stuck they wouldn't get a job and you are not be considered
a gainful employment
if someone went to a career fair that lasted one day
I I'll check we're done with you
so I love I love the state of New York went after them
they have admitted no wrongdoing remember they were not found guilty they
decided to settle
but again that settlement was about ten million dollars 9.5 million of which
will go to a fund to reimburse
students so I love that okay so listening to everything they did this in
so many different
I'm States but only New York went after them
and it turns out that if you actually go after people who are
committing fraud war ribbon of students this era
that you can get people their money back wow in novel idea actually standing up
for the citizens you're supposed to represent great credit to Eric
Schneiderman in this case attorney general
he was a guy fighting the banks the first place got Cooper a little bit by
the Obama administration
I think he realized it was a mistake right in that category but here he is in
a different category
again this is the proud tradition release mister who was Attorney General
in New York
who would go after these guys to make sure they're actually delivering for
consumers in this case 9.25 actually
million dollars going back to the students how great is that
that's terrific morse they should do it I i love it
and I wish I wish that there was like some sort of federal legislation
that would make sure that these types of unlawful practices did not continue
because remember %uh the Obama administration is pushing for gainful
employment
I'm and these were very strict standards that would insure that these for-profit
colleges would have to prove gainful employment other students
but of course the for-profit lobby got in there
and the ended up passing a very watered down version of that so
I don't like these abuses especially up you know
toward our veterans because a lot of veterans
I get targeted by these for-profit colleges because they have federal money
that they can spend on education
want one super last thing they're look fella governing this case is tremendous
leverage
so new yorkers using whatever leverage they can look at the results say it
right
in federal level these for-profit colleges the whole scam
is to get federal money if they cut off the federal money they're done for
right because ninety percent of the revenue comes from federal loans
to the sous and so this ideas you'll or the students in you don't always get
along
according to employees only it's gonna be terrific the thing that drove me
crazy in one part
that they at total lie to the kids about what's one thing to say hey listen
I'm coming to get you a job site getting get your job so I think that they would
say
oh you're gonna be licensed for this field and they will be able to work in
that field once you graduate or that they were lying about that
in some other feels your licensed at all and then go on to bigger can we get a
job in like no you're not you're a places like what I just spent all this
money in time at the school to get iraq
okay that's unbelievable so at the federal level
if all you have to do is say all if you do that if you do that licensing trick
as an example you're done for you don't get any more federal money
do you have any idea how quickly they fix that
okay but the money they got from the federal government loans
they then turn around and use to
by the same federal politicians in our legalized corruption
who they let him get away with it