THE U.S. MILITARY JUST DEALT A HUGE BLOW TO FOR-PROFIT EDUCATION
Eduction Management Corporation is the nationâ€™s second largest for-profit educator, and operates chains like Brown Mackie College, Argosy University and the Art Institutes.
A spokesperson for EDMC reveals to Consumerist that 22 Brown Mackie campuses have ceased enrollment as of Friday. There will still be four locations open that will continue to take enrollments.
â€œEducation Management has made the decision to not accept new enrollments into programs at 22 locations of the Brown Mackie College system of schools,â€ says Bob Greenlee, a spokesperson for EDMC. He adds, â€œWe remain committed to assisting currently enrolled students in successfully completing their programs of study. Our goal is to ensure that currently enrolled students receive an education that will equip them with the skills and expertise they need for practice in their chosen field.â€
•Type: Private, for-profit
•Years Open: 1982â€“June 11. 2016
•Students: 10,000 est
•In June 2016, parent company Education Management Corporation announced plans to close all 25 Brown Mackie campuses
Although the locations will no longer be accepting new enrollments (sans the four campuses) they wonâ€™t be closing immediately.
Currently, Brown Mackie College has 26 locations in 15 states. According to a 2013 report, the school had enrolled approximately 17,000 students.
A source close to the matter shares that four of the Brown Mackie campuses are seeking different ownership but itâ€™s unclear what will come of this.
With the enrollment stopping and the locations beginning teach-outs (an arrangement to ensure all currently enrolled students can complete their course of study), at least two executives with the schools have left the company, including a regional vice president of human resources and the president of Brown Mackie College.
This news comes very close after last monthâ€™s EDMC lay off of more than 200 employees. Additionally, last May, EDMC announced the close of 15 of the 52 Art Institute campuses across the country.
In total, the closures affected nearly 5,400 students at campuses in Georgia, Ohio, Washington D.C., Florida, Missouri, Michigan, New York, Utah, California, Wisconsin and Pennsylvania.
The teach-out program will allow these students to complete their course of study.
In other news, EDMC - which is partially owned by Goldman Sachs - has faced issues in recent years from agreeing to pay $95.5 million to settle fraud and recruitment violations to falling enrollments and financial difficulties and increased scrutiny from state and federal regulators.
The Department of Justice announced in November they had reached a settlement with EDMC which involves 39 states and the District of Columbia, which puts an end to a long-running lawsuit accusing the second largest for-profit education company of defrauding the federal government.
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