National / Politics / U.S. News

US reaches $95.5M settlement in for-profit education case

Attorney General Loretta Lynch, left, accompanied by, from left, Education Secretary Arne Duncan, U.S. Attorney of the Western District of Pennsylvania David Hickton and Iowa Attorney General Tom Miller, speaks at a news conference at the Justice Department in Washington, Monday, Nov. 16, 2015, to announce a major federal and state civil litigation settlement concerning Educational Management Corp., a Pittsburgh-based company that runs for-profit trade schools. (AP Photo/Andrew Harnik)

Attorney General Loretta Lynch, left, accompanied by, from left, Education Secretary Arne Duncan, U.S. Attorney of the Western District of Pennsylvania David Hickton and Iowa Attorney General Tom Miller, speaks at a news conference at the Justice Department in Washington, Monday, Nov. 16, 2015, to announce a major federal and state civil litigation settlement concerning Educational Management Corp., a Pittsburgh-based company that runs for-profit trade schools. (AP Photo/Andrew Harnik)

PITTSBURGH (AP) — A Pittsburgh company that enrolls more than 100,000 students at for-profit trade schools and colleges across the U.S. is not admitting wrongdoing as part of a $95.5 million settlement with the Obama administration.

The settlement was announced by the Justice Department on Monday. It resolves allegations that Education Management Corp. used illegal enrollment incentives to pay recruiters and exaggerated its career-placement ability.

The company denies that but says it will “provide more transparency during the recruiting process” of students.

The firm operates schools under four brands: the Art Institutes, South University, Argosy University and Brown-Mackie College.

The penalty will be paid through 2022. The company will also forgive loans to students who left its schools within 45 days of their first term. The loan forgiveness applies to students that left school between from 2006 through 2014.

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Tucker reported from Washington, D.C.
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