Uncovering the Truth about Education Management Corporation: A Comprehensive Overview
Education Management Corporation (EDMC) is a for-profit college corporation that has been under scrutiny for years. There have been allegations of fraud, predatory lending practices, and misleading job placement statistics. This article examines the history of EDMC, the allegations against it, and current developments.
The History of Education Management Corporation
EDMC was founded in 1962 as Art Institute of Pittsburgh. The company grew rapidly and expanded its reach, ultimately acquiring several more art and design schools. In 2006, EDMC went public and was listed on NASDAQ. The company continued to grow, acquiring several more schools and becoming one of the largest for-profit college corporations in the US.
Allegations against Education Management Corporation
Over the years, EDMC has faced numerous allegations of deceptive practices and fraudulent behavior. In 2011, the Department of Justice filed a lawsuit against EDMC, accusing the company of defrauding the government by illegally paying recruiters based on the number of students they enrolled. The lawsuit also accused the company of lying about graduate job placement rates in order to boost enrollment. EDMC eventually settled the lawsuit for $95 million.
Other Allegations
In addition to the DOJ lawsuit, EDMC has faced several other allegations of misconduct. For example, the company has been accused of predatory lending practices, misleading students about the quality of education they would receive, and even falsifying student records to maintain eligibility for federal financial aid. These allegations have led to investigations by a number of regulatory bodies, including the Securities and Exchange Commission and the Department of Education.
Current Developments
EDMC’s troubles have not abated in recent years. In fact, the company has been on a downward trajectory for some time. Enrollment levels have plummeted, and the company has been forced to close several of its campuses. In 2017, EDMC announced that it would be selling some of its remaining schools to Dream Center Education Holdings. The sale was completed in early 2018, effectively ending EDMC’s run as a for-profit college corporation.
Conclusion
Education Management Corporation’s history is one marked by controversy and allegations of misconduct. While the company started as a small art and design school, it eventually became one of the largest for-profit college corporations in the US. However, legal troubles, falling enrollment, and a changing higher education landscape ultimately brought the company down. As for the legacy of EDMC, it serves as a cautionary tale about the dangers of for-profit education and the importance of rigorous oversight and regulation.
