Thursday, December 15, 2016

For-profit, rural-heavy college that lied about graduation rates and loans is making restitution

Daymar College locations; six in Kentucky
including the two in Louisville, have closed.
Students who attended a for-profit college accused of lying about graduation rates and loans will begin receive restitution checks, Kentucky Attorney General Andy Beshear announced Wednesday. For-profit institutions such as Daymar College draw their students disproportionately form rural young adults.

Then-Attorney General Jack Conway sued Daymar in 2011, saying it coerced students into buying overpriced textbooks and misled them about credit transfers, financial aid and job opportunities. The school agreed last year to pay $1.2 million to about 3,500 students. Default rates on student loans are highest at for-profit colleges and community colleges. Daymar, with sites mostly in small towns, had the highest default rates in Kentucky.

"As part of its settlement, Daymar has already forgiven $11 million in student debt to nearly 6,500 students who qualified. The average loan forgiveness amount was $1,700," Beshear's office said. He said the average restitution amount for students who attended a Daymar campus in Kentucky between July 27, 2006, through July 27, 2011, and filed a claim is approximately $345.

Daymar had 11 locations in Kentucky. Five remain open, with two still enrolling new students. Daymar also has been located in Indiana, Ohio and Tennessee.

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