Feds Cut Aid Eligibility at 3 Medtech College Campuses

July 27, 2016

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.

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