PA Attorney General's Deal leaves college students angry and broke

[JPZenger]

http://www.mcall.com/news/local/all-5lvc.6284561feb24,0,2224575.story

Consumer advocate calls settlement 'embarrassing.'
By Sam Kennedy and Tim Darragh Of The (Allentown) Morning Call
February 24, 2008

Excerpts:

"The big winners in Pennsylvania Attorney General Tom Corbett 's $200,000 settlement with Lehigh Valley College last week were the state and the school's parent company, Career Education Corp. Students who had turned to Corbett for help after accusing the Center Valley school of steering them toward high interest loans got nothing. The attorney general's office said What the heck did you do to get $200,000?, Lewis asked rhetorically of Corbett. ''You've done nothing to help the students,'' said the 24-year-old Allentown resident. Career Education, a Chicago area company with about 80 for-profit schools nationwide and annual revenue of $1.7 billion, was able to shield itself from legal jeopardy by agreeing to what financial analysts equate to a slap on the wrist.

Under the settlement, Career Education denies it violated the state consumer protection law. Corbett's office announced the end of its investigation into Lehigh Valley College on Tuesday. Under the terms of the deal, the state dropped its probe. In return, Career Education paid the state $200,000 and admitted no wrongdoing.

I-iesha Leon, 24, is one of two former students who has filed a lawsuit in Lehigh County Court. She reacted in disbelief to the settlement and how the money will be disbursed. ''It's not going to the people who were affected? Not even a little bit?'' asked Leon, now a Houston resident whose wages are garnished because she is unable to pay her student loan bills.

Consumer advocate and Philadelphia lawyer Irv Ackelsberg said it was doubly disappointing because The Morning Call ''basically handed'' the case to the attorney general's office. Corbett launched the department's probe into Lehigh Valley College in the summer of 2005, shortly after The Morning Call published an investigation of the school's practices. Among the newspaper's findings: Lehigh Valley College engaged in aggressive recruiting tactics; its job placement services fell short of expectations; academic standards were lax, and expensive tuition and high-interest loans left some students with overwhelming debt."

[Metta]

1. When will people learn that what they do is going to be what they inherit?

One of the immutable laws of the universe.

[JPZenger]

2. Dem AG Candidate Slams AG Agreement with College

Here is a follow-up article in which Dem Attorney General candidate Morganelli attacks the current AG's settlement:

http://www.mcall.com/news/local/all-a1_5lvc.6287085feb26,0,6061370.story

[bronxiteforever]

3. Kick & R-