Kaplan Inc., the company that owns several for-profit colleges and is itself a subsidiary of the Washington Post Company, will pay $1.6 million to former students to end a lawsuit.
According to an article by Tamar Lewin in the New York Times:
A whistle-blower suit relating to the program was unsealed on Friday by the Federal District Court in Philadelphia. The lawsuit, filed in 2007 by David Goodstein, the former director of education at Kaplan’s CHI Institute, charged that Kaplan continued to enroll students in the Broomall surgical technology program even though it did not have enough of the clinical placements the students needed to graduate.
As a result, the lawsuit charged, some students were sent home on “leaves of absence” after they finished the classroom portion of the program to wait for a placement that in many cases never materialized. Kaplan, in settling the case, admitted no wrongdoing.
CHI Institute is a for-profit school in Philadelphia with programs in allied health, criminal justice, and information technology, in addition to trade programs in things like heating and air conditioning repair.
The college costs about $16,000.
As a result of the settlement Kaplan will pay about $500,000 to 43 students who took out loans to attend the school but who could never graduate (or get good jobs to pay off their loans) because the school wasn’t able to offer the clinic training students needed to graduate or obtain licenses