FRANKFORT, Ky. (LEX 18)– Attorney General Andy Beshear announced Monday that for-profit education company Career Education Corp. (CEC) has agreed to reform its recruiting and enrollment practices and forgo collecting more than $2.3 million in debts owed by more than 1,300 Kentucky students.
The announcement is part of a $498 million national settlement with the Illinois-based CEC and state attorneys general that caps a five-year investigation launched after numerous student complaints and a critical report by federal lawmakers.
CEC does not have brick and mortar locations in Kentucky, and has closed or phased out many of its schools nationwide over the past 10 years. It currently offers only online courses through American InterContinental University and Colorado Technical University.
Its brands have included Briarcliffe College, Brooks Institute, Brown College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College and Sanford-Brown.
CEC has agreed to forgo collection of debts owed by students who either attended a CEC institution that closed before Jan. 1, 2019, or whose final day of attendance at American InterContinental University or Colorado Technical University occurred on or before Dec. 31, 2013.
Over the next two months, impacted students will receive a letter from CEC notifying them of the debt cancellation and that the credit reporting agencies are being notified to remove any adverse credit information. Former students with debt relief eligibility questions may contact CEC using its contact info page.
Students who believe a private college has misled them or who have been a victim of fraudulent debt relief services can contact Beshear’s office by phone, 502-696-5300, or by completing a complaint form.