Unveiling the Truth of American Intercontinental University

A Study for Borrower Defense to Repayment

American Intercontinental University (AIU), a for-profit institution under the Career Education Corporation (CEC), has faced numerous lawsuits, investigations, and settlements due to allegations of deceptive practices. 

This article explores the legal history of AIU and its impact on students and the Borrower Defense to Repayment program, providing insights for those seeking loan forgiveness due to misconduct by their educational institution.

Career Education settles 5-year inquiry over marketing practices

The Background of Borrower Defense to Repayment

Borrower Defense to Repayment is a federal program designed to protect students from predatory practices by educational institutions. It allows borrowers to seek forgiveness of federal student loans if their school engaged in fraudulent activities or violated state laws. As AIU became a focal point of such allegations, its lawsuits are pivotal to understanding Borrower Defense claims.

The Genesis of the Career Education Corporation Lawsuits

Career Education Corporation (CEC) faced a barrage of legal challenges for engaging in Fraudulent Practices. These included inflated job placement statistics, aggressive recruiting, and misrepresentation of accreditation. In 2019, CEC reached a $493 million settlement to forgive debts owed by nearly 180,000 students, including those at AIU.

Nearly 180,000 Students Won't Have To Repay Loans From For-Profit Higher Ed Company

Major Lawsuits Alleging

American Intercontinental University

Several high profile lawsuits have targeted AIU, primarily focusing on its misleading practices. Students have consistently raised concerns about being misled into costly programs that did not deliver promised outcomes. These legal actions have brought attention to AIU’s deceptive marketing tactics, including:

• Federal Trade Commission (FTC) Settlement: AIU faced a lawsuit for misrepresenting job placement rates and program quality. According to the FTC's case details, the lawsuit was part of a broader investigation into deceptive practices by Career Education Corporation. The case resulted in significant penalties and mandated corrective actions to address the institution's misleading advertising claims.
• State Attorneys General Settlement: In 2018, AIU and other subsidiaries of CEC settled with 49 state attorneys general for $5 million. The attorneys general alleged that CEC pressured employees to enroll students and made misleading statements.
• Private plaintiffs settlement: AIU and CEC settled with private plaintiffs for $22 million.

Major Allegations Against American

Intercontinental University

Major allegations against AIU highlight recurring themes:

• Deceptive Marketing: Inflated promises of career success and salaries.
• Aggressive Recruitment: High-pressure sales tactics to enroll students quickly, regardless of their ability to benefit from the program.
• Poor Educational Quality: Complaints about outdated curricula and unqualified faculty undermined the value of AIU’s programs.
• Financial Exploitation: Hidden fees, inflated tuition, and mismanagement of student loans created financial burdens for students.
• Nature Of Loans: Misrepresentation of Nature of Loans

Diallo v. American InterContinental University, Inc. (2009)

• Allegations: In this case, former students alleged that AIU engaged in fraudulent practices, leading them to enroll under false pretenses. They claimed that AIU misrepresented its accreditation status and the value of its degrees, which induced them to pay tuition and incur loans, plus interest, to finance their education. The plaintiffs argued that these misrepresentations caused them financial harm, as they were unable to secure employment in their fields of study, rendering their incurred debt burdensome.
• Outcome: The court's decision focused on procedural aspects, particularly the denial of class certification, rather than the substantive allegations of misrepresentation. The case highlights concerns about AIU's practices related to the nature of loans and financial obligations imposed on students. law.justia.com

Key Outcomes and Impact of the

American Intercontinental University Lawsuits

The legal battles involving AIU have led to several key outcomes:

• Debt Forgiveness: Thousands of students received relief through settlements like the 2019 CEC agreement.
• Increased Oversight: AIU and other for-profit institutions now face greater scrutiny from the Department of Education and state regulators.
• Policy Changes: The lawsuits spurred reforms to strengthen Borrower Defense regulations, making it easier for students to file claims.

Career Education Corp., Tied to DeVos Aides, Pays Millions to 

Settle State Claims of Illegal Practices

Common Reasons for Borrower Defense Claim Denials

• Insufficient Evidence: Failing to provide adequate documentation or proof of the school’s misconduct can result in claim denial. Learn why to use attorney-owned professional help.
• Missed Deadlines: Submitting an application after the deadline or failing to adhere to filing timelines can disqualify claims.  Contact Legal Touch Borrower Defense to meet deadlines.
• Ineligible Claims: Applications that do not clearly demonstrate how the school’s actions violated borrower protections may be rejected. Check your eligibility today.
• Lack of Specificity: General complaints without detailed examples of misrepresentation or fraud are less likely to be approved. Download our free eBook for help.
• School Not Found Guilty: Claims related to institutions not proven to engage in deceptive practices or fraud are often denied. Contact focused consultants immediately.

Borrower Defense to Repayment: Your Path to Justice

If your school misrepresented itself, leaving you burdened with significant debt, the Borrower Defense to Repayment program offers a pathway to justice. Filing a Borrower Defense application, you can seek financial relief and ensure institutions are held accountable. Here are the key reasons to consider taking action:

1. Loan Forgiveness: Erase student loans linked to fraudulent school promises and deceptive practices.
2. Financial Freedom: Regain control over your finances.
3. Accountability: Ensure deceptive institutions are held responsible.
4. Future Opportunities: Free yourself to pursue further education or a new career path. 
5. Access to Additional Support: Engage with experts and resources to strengthen your case.

Take Action Today

Don’t let school misrepresentation and lies ruin your future. Here’s how to get started:

• Check Eligibility: Visit defenseclaims.com/check-eligibility
• Get Help: Reach out to experts at defenseclaims.com/contact
• Learn More: Download our free eBook at defenseclaims.com/ebook-form

Conclusion

The lawsuits and allegations against American Intercontinental Universityhighlight systemic issues within the for-profit education sector. Students defrauded by AIU have found hope through the Borrower Defense to Repayment program. By holding institutions accountable, these legal actions pave the way for a more equitable and transparent educational landscape.

If you believe you’re eligible for relief, take immediate steps to check your eligibility and consult trusted resources for guidance.

Stay informed and proactive—relief may be closer than you think.

Legal Touch Borrower Defense