AG HEALEY SECURES
OVER $1 MILLION IN RELIEF FOR STUDENTS UNDER SETTLEMENT WITH FOR-PROFIT SCHOOL
IN PITTSFIELD
The Mildred Elley
School Resolves Allegations that it Failed to Follow State Disclosure
Regulations
BOSTON — Attorney General Maura Healey announced that a for-profit school
in Pittsfield has agreed to provide over one million dollars in relief to
hundreds of former students to resolve allegations that the school used high
pressure enrollment tactics and failed to provide proper disclosures about the
program, in violation of the AG’s For-Profit School Regulations.
The assurance of discontinuance, filed in
Suffolk Superior Court, alleges that from January 2015 to March 2017, the
Mildred Elley School, based in New York, violated the state’s for-profit and
occupational school regulations designed to curb deceptive and unfair practices
and increase protections for prospective students.
“Our for-profit school regulations
ensure that prospective students have the information they need to make
informed decisions about their education and are protected from deceptive
enrollment practices,” AG Healey said. “This settlement stops this
school from using these tactics on students moving forward and secures relief
for the harm done.”
The Mildred Elley School has one
campus in Massachusetts, located in Pittsfield, and offers a variety of
certificate programs in vocational fields such as business technologies,
clinical medical assisting, cosmetology, massage therapy, medical office
assisting, and practical nursing. These programs take on average 15 months to
complete.
According to the allegations in the
AG’s settlement, the school repeatedly failed to make certain disclosures to
consumers and prospective students at least 72 hours prior to entering into
enrollment agreements. The school also allegedly engaged in high-pressure sales
tactics by contacting prospective students more than twice in a seven-day
period. The settlement also alleges that the school’s published placement rates
for certain programs were above 70%, when placement rates calculated under the
AG’s regulations were significantly lower.
Under the terms of the settlement,
The Mildred Elley School is required to pay $600,000 that the AG’s Office will
distribute to students of the school, and will discharge over $420,000 in debts
owed by students to the school.
The
Mildred Elley School is the most recent for-profit school to be held to account
for violations of the AG’s for-profit school regulations. Previously, the AG’s
Office settled with Bay
State College for $1,100,000 and the Jolie
Hair and Beauty Academy for over $160,000 in relief
for students harmed by their alleged unfair and deceptive practices.
Addressing fraud and abuse in for-profit school and student lending industry
has been a top priority for AG Healey since taking office, whether taking
predatory schools to court, changing the practices of student loan servicers,
going after unlawful student loan “debt relief” companies, or helping student
borrowers find more affordable repayment solutions through her
first-in-the-nation Student
Loan Assistance Unit. The AG’s Office also
houses the state’s Student Loan Ombudsman, who advocates for student borrower rights.
Massachusetts borrowers who are
looking for student loan help or information should visit the AG’s Student
Loan Assistance page or call the Student Loan Assistance Unit Hotline at
1-888-830-6277.
This case was handled by Assistant Attorney General Lilia DuBois, Legal Analyst
Amanda Hesse, and Paralegal Bridget Menkis of AG Healey’s Insurance and
Financial Services Division.
