WASHINGTON, D.C. — The U.S. Department of Education (DOE) this week announced a significant conclusion – a settlement with the for-profit school owner, International Education Corporation (IEC), Florida Career College (FCC), and United Education Institute (UEI). This agreement has significant implications for students across the United States, as it pertains to violations of the ability-to-benefit (ATB) test regulations.
To get a handle on the gravitas of this situation, it’s important first to comprehend what exactly the ATB test entails. It’s essentially an avenue for students without a high school diploma or GED equivalent to access federal student aid, provided they pass a test demonstrating their ability to benefit from postsecondary education.
However, in 2023, the DOE undertook an investigation that unveiled several alarming practices by FCC and IEC. These included compounded pressure on proctors to ensure students passed, modifying test outcomes to increase the number of students eligible for federal aid, and more. FCC employees even went as far as to change exam answers, assist students during testing, or take tests on behalf of students – clear violations of testing rules.
The primary motivation behind these illicit activities seems to have been increasing enrollment and thus boosting school profits. However, an astonishingly high number of students enrolled through these manipulated ATB tests withdrew from their respective programs, leaving them with no degree and considerable student loan debt.
The recent settlement agreement aims to address these injustices. As per the agreement, the DOE has finalized FCC’s termination from federal student aid programs, imposed strict conditions on UEI/UEIC’s continued participation, demanded a leadership shakeup within IEC, and procured a letter of credit in excess of $6 million from IEC to cover any impending liabilities or loan discharges related to the misconduct.
What does this mean for our readers, you ask? It serves as an important reminder to remain vigilant when choosing an education institute. It’s crucial to remember that the ATB regulations were designed to protect students from potential financial burdens they cannot handle. Violations of these regulations not only harm the affected students but also the integrity of the federal student aid programs.
In the wake of these events, the DOE has worked collaboratively with FCC’s accrediting agency and state higher education officials to inform students about their options. These include the potential to enroll at other schools or seek applicable loan discharge if they were wrongfully enrolled through ATB testing.
This unprecedented settlement highlights the necessity of enforcing higher education laws and regulations to safeguard students, taxpayers, and the overall integrity of federal student aid programs. And while the path may seem daunting, the goal remains the same: to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.
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