The U.S. Department of Education on Tuesday said it was cutting off federal student aid eligibility at three Medtech College campuses, located in Maryland, Virginia and Washington, D.C. A department investigation found "egregious misrepresentation of job placement rates" by the Medtech campuses, alleging that the for-profit college overstated placement rates to its accreditor, the department and prospective students.
The three campuses enroll a total of roughly 750 students, the department said, and received about $16 million in federal grant and loan aid in 2014-15. To continue to be eligible for federal aid at its other campus locations, the company must post a letter of credit equal to 80 percent of its annual federal aid revenue, worth about $37 million.
