"Hundreds of former students of the for-profit Kaplan Higher Education company will receive refunds of their tuition, as part of a settlement reached between Kaplan and federal prosecutors who claimed the college hired unqualified instructors to teach Medical Assistant classes at its San Pedro and Ingram campuses in San Antonio, News Radio 1200 WOAI reports.
Hiring unqualified teachers is a federal offense because most of Kaplan's students receive Pell Grants, Federal Direct Loan Program grants, and other federally guaranteed financial assistance.
The case began with the filing of what is called a 'qui tam,' lawsuit, in which a whistle-blower sues under federal provisions allowing a person who exposes wrongdoing to receive a portion of the settlement.
In this case, the whistle-blower claimed that Kaplan 'knowingly requested, received, and retained' federal tuition funds for courses taught by individuals who did not meet the minimum requirements established by Texas law.
Kaplan says its settlement is not an admission of any wrongdoing, simply a desire to avoid lengthy and expensive litigation.
Kaplan will pay about $1.3 million in a civil settlement. About $1.1 million of that will got out to 289 former students in the form of tuition refunds."
Read more: http://www.woai.com/articles/woai-local-news-sponsored-by-five-119078/forprofit-college-settles-allegations-it-hired-13119463/#ixzz3OcNdFtD3
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