Statement on The Department of Education Settlement Resulting in Closure of For-Profit School Florida Career College
Former students helped expose the for-profit school’s systemic fraud and abuse in lawsuit Britt v Florida Career College
BOSTON – The U.S. Department of Education today announced a settlement agreement with for-profit school owner International Education Corporation (IEC) and its subsidiaries—Florida Career College (FCC) and United Education Institute (UEI), which also uses the brand name, UEI College (UEIC)—related to violations of the ability-to-benefit (ATB) test regulations. These regulations govern eligibility to receive federal student aid for students who do not have a high school diploma or GED equivalent.
The settlement agreement ends Title IV participation for Florida Career College, restricts UEI College’s use of ability-to-benefit testing, and requires the resignation of top leaders at the parent company.
Statement from Eileen Connor, President and Director of the Project on Predatory Student Lending:
“Nearly four years ago, our clients filed a class action against Florida Career College for selling a predatory product using false representations and high-pressure sales tactics to systematically target Black students and leave them with crushing and unpayable student debts. Our clients' dedication to exposing FCC and stopping it from harming future borrowers is finally seeing its day of justice. This victory is a testament to their courage, and together we applaud the Department of Education for shutting down this predatory school.”
Former students exposed FCC misconduct in the lawsuit Britt v. Florida Career College, which was brought in April 2020 by former FCC students represented by the Project on Predatory Student Lending. The complaint alleged that FCC used high-pressure tactics and false statements to induce students to enroll in overpriced career-training programs. It alleged that students borrowed thousands of dollars in federal student loans to pay FCC’s inflated tuition, which in turn allowed the school to line its own pockets and invest primarily in recruitment and advertising in order to scam more people. The complaint detailed many examples of predatory behaviors by FCC, including how it targeted Black students with its low-value product. In September 2021, the district court compelled the parties to arbitration. In May 2023, the plaintiffs voluntarily dismissed their claims.
About the Project on Predatory Student Lending
The Project on Predatory Student Lending (PPSL) is the leading legal organization representing student borrowers against predatory for-profit colleges and the policies that enable institutions to exploit and cheat students. PPSL uses bold, strategic litigation and advocacy to demand accountability in the higher education space and influence policy solutions to create a more just and affordable education system. PPSL represents more than one million student borrowers and its work has resulted in cancellation of more than $16 billion of fraudulent student loan debt.
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