About The EDMC Settlement

The settlement outlines a number of changes that EMDC must make to its practices, including:

Disclosures
  • EDMC must provide a single-page disclosure to each prospective student outlining the student’s anticipated total cost, the median debt and earnings for those who complete the program, and the job placement rate, among other information. 
  • EDMC must reform its job placement rate calculations to provide more accurate information about students’ likelihood of obtaining employment in their chosen field.
  • Prospective students who use federal student loans or financial aid will be required to utilize an Electronic Financial Impact Platform to provide a picture of the student’s expected education program costs, debt burden, and post-graduate income.

Prohibited misrepresentations
  • EDMC must not make misleading statements about accreditation, selectivity, graduation rates, placement rates, transferability of credit, financial aid, veterans’ benefits, or licensure requirements. 
  • EDMC is prohibited from knowingly enrolling students in programs not accredited by the state if such accreditation is typically required for employment.

Recruiting practices
  • EDMC is prohibited from engaging in deceptive or abusive recruiting practices.
  • It also is required to record online chats and telephone calls with prospective students.

Orientation and refund provisions 
  • EDMC must require incoming undergraduate students with fewer than 24 credits to complete an orientation program prior to their first class. 
  • Undergraduate students at ground campuses must be permitted to withdraw within seven days of the beginning of the term or the first day of class (whichever is later) without incurring any cost.
  • Undergraduate students in online programs who have fewer than 24 online credits must be permitted to withdraw within 21 days of the beginning of the term without incurring costs.

Third-party vendor requirements 
  • EDMC must require its lead vendors (companies that place online ads urging consumers to consider new educational or career opportunities) to agree to certain compliance standards, such as not representing loans as “free money” and not sharing students’ information without their permission. 
​The agreements appoint Thomas J. Perrelli as Settlement Administrator.  Mr. Perrelli is asked to independently review EDMC’s compliance with the terms of the agreements.  By listening to recorded phone calls, reviewing student complaints, looking at EDMC records, and talking with current or former students or employees, Mr. Perrelli will identify problems and successes.  He will report his findings in an Annual Report that will be given to the state attorneys general and EDMC.  He will also prepare a summary public version  of each Annual Report.   

The Agreement also included provisions relating to the forgiveness of institutional debt owed by former students.  The Settlement Administrator has no authority relating to determining eligibility for such relief.   

This website will provide an opportunity for current or former students, employees, or other members of the public to submit complaints, concerns, or feedback (positive or negative) about compliance under the Agreement to the Administrator.