Raúl Torrez | Attorney General

Student Loan Company will Forgo Collecting in New Mexico as AG Balderas, 48 Attorneys General Reach Settlement

FOR IMMEDIATE RELEASE: January 3rd, 2019

Contact: David Carl (505) 288-2465

Albuquerque, NM – For-profit education company Career Education Corp. (CEC) has agreed to
reform its recruiting and enrollment practices and forgo collecting about $1.8 million in debts
owed by 709 New Mexican students, and millions more nationally, in a settlement with Attorney
General Balderas and 48 other attorneys general.
“I will always fight to ensure that New Mexican students are not taken advantage of,” said
Attorney General Hector Balderas. “This settlement will help hundreds of hard-working New
Mexicans continue to reach their educational goals, and provide for their families.”
As a result of this settlement, CEC agrees to forgo any and all efforts to collect debts owed by
former students in New Mexico.
CEC has also agreed to pay $5 million to the states, with New Mexico receiving about $75,000.
CEC has closed or phased out many of its schools over the past 10 years. Its brands have
included Briarcliffe College, Brooks Institute, Brown College, Harrington College of Design,
International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and
Sanford-Brown.
In 2014, student complaints led to an investigation, which revealed evidence demonstrating that:
• CEC used emotionally charged language to pressure them into enrolling in CEC’s
schools;
• CEC deceived students about the total costs of enrollment by instructing its
admissions representatives to inform prospective students only about the cost per credit
hour without disclosing the total number of required credit hours;
• CEC misled students about the transferability of credits into CEC from other
institutions and out of CEC to other institutions by promising on some occasions that
credits would transfer;
• CEC misrepresented the potential for students to obtain employment in the field by
failing to adequately disclose the fact that certain programs lacked the necessary
programmatic accreditation; and,
• CEC deceived prospective students about the rate that graduates of CEC programs
got a job in their field of study, thereby giving prospective students a distorted and
inaccurate impression of CEC graduates’ employment outcomes. For instance, CEC
inaccurately claimed that its graduates were “placed” who worked only temporarily or
who were working in unrelated jobs.
Because of the unfair and deceptive practices described above, students enrolled in CEC who
would not have otherwise enrolled, could not obtain professional licensure, and were saddled
with substantial debts that they could not repay nor discharge. CEC denied the allegations but
agreed to resolve the claims through this multistate settlement.
CEC has agreed to forgo collection of debts owed to it by students who either attended a CEC
institution that closed before Jan. 1, 2019, or whose final day of attendance at AIU or CTU
occurred on or before Dec. 31, 2013.
Former students with debt relief eligibility questions can contact CEC

Raul Torrez

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The image is the New Mexico Department of Justice primary seal. This seal is framed with gold gradient rope and a slim gold bar followed by a thicker dark blue circular bar that has white text that reads, "State of New Mexico" at the bottom and "Department of Justice" at the top. At the center of the seal is a gradient circle with a dark blue roman-inspired Pillar in the shape of New Mexico.