American Career College Class Action Lawsuit

A jilted student has filed a class action lawsuit against the American Career College claiming it kept financial aid money for itself, for services it did not provide, instead of giving the money to students.

The class action lawsuit is filed on behalf of all students who did not receive financial aid for housing and transportation, even though they qualified for it.

Plaintiff Lashara Leonard alleges in the American Career College class action lawsuit that “ACC is a college campus institutionally accredited by the Accrediting Bureau of Health Education Schools, which has been approved to participate in the Federal Student Aid Program through the United States Department of Education.”

Despite receiving federal money to give to students, Leonard claims ACC keeps it for itself.

According to the class action lawsuit, Leonard enrolled in American Career College and received a letter breaking down her tuition costs and awards of financial aid after she was accepted, but she never got any of the money.

Leonard claims the college also kept the financial aid money from hundreds of other students.

“Allowing colleges to violate the financial aid laws by failing to appropriately disburse financial aid income to the enrolled students enriches the colleges by paying for services not rendered while at the same time creating a debt for students who will be newly entering the workplace,” the class action lawsuit states.

Leonard further charges in the class action lawsuit that ACC’s college catalog misled students by claiming that total tuition costs include fees for tuition and services provided on campus, even though there are also built-in fees for housing, transportation, and personal use, which the college does not provide.
    
For example, the catalog lists total tuition for vocational nursing as $33,950, though tuition fees are only around $18,600, so students are charged $15,000 for services they do not actually receive. Students had no reason to believe that their tuition costs included services besides classroom instruction and campus services, the class action lawsuit says.

“Defendant ACC intended to defraud plaintiff and those similarly situated with plaintiff as evidenced by the fact that defendant ACC provided no breakdown of the $33,950 tuition; failed to advise plaintiff and those similarly situated that aid had been obtained for housing, transportation, and personal funding; failed to disburse the aid obtained for transportation, housing and personal funding to plaintiff and those similarly situated, but instead kept those funds and applied them to services ACC did not and does not provide,” states the class action lawsuit.

The American Career College class action lawsuit is brought on behalf of all similarly situated students. It is seeking punitive damages and more for fraud, conversion and unfair business practices.