The Art Institute of California – Sacramento
The Art Institute of California – Sacramento is one of The Art Institutes, a system of more than 40 educational institutions located throughout North America, under the parent company EDMC providing education in design, media arts, fashion and culinary arts. EDMC was founded in 1962, and is 41% owned by Goldman Sachs as a for-profit college.
Established in 2007, The Art Institute of California – Sacramento is a branch of The Art Institute of California – Los Angeles and is one of eight locations of The Art Institutes system located within California. Located in Sacramento, California, The Art Institute of California – Sacramento is accredited by the Accrediting Council for Independent Colleges and Schools (ACICS).
- 1 Programs
- 2 Graduation Success Rates
- 3 US Government Sues The Art Institute for 11 Billion in Fraudulent Practices
- 4 Complaints About The Art Institute Schools in California and Other States
- 5 Financial Trouble
- 6 References
- 7 External links
Bachelor of Science Programs
- Culinary Management
- Digital Filmmaking and Video Production
- Game Art & Design
- Graphic Design
- Interior Design
- Media Arts & Animation
- Web Design & Interactive Media
Associate of Science Programs
Graduation Success Rates
According to the Student-Rights-to-Know Act, any school receiving Title IV funding from the US Government is required to calculate the number of actual students who graduate with a degree and disclose this information to current and prospective students. A sample of students followed from 2004 to 2010, revealed 320 out of 1021 students completed graduation. This gives The Art Institute of Sacramento a success rate] of only 31 percent.
US Government Sues The Art Institute for 11 Billion in Fraudulent Practices
The US Government Files Lawsuit Against The Art Institute and parent company EDMC
April 2011 The Art Institute and its parent company Education Management Corporation or EDMC were investigated and sued by the United States Department of Justice and four states including California for illegal and fraudulent practices of $11 billion in federal and state financial aid money. A Press Release was issued by the Department of Justice on August 8, 2011 describing the allegations of violating the False Claims Act.
California Files Lawsuit Against The Art Institute and parent company EDMC
The State of California filed a Notice of Intervention against The Art Institute's parent company EDMC and joined the federal lawsuit according to California Watch The Art Institute of Sacramento along with all the Art Institute campuses were named in the joint complaint.
The lawsuit alleges The Art Institute illegally targeted low-income and foreign students who qualify for government loans which generates 2.2 Billion or 89.3 percent of The Art Institute's net revenue in 2010. Recruiters were allegedly paid $800 for each student that enrolled during their frequent sales pitch events called Open House. The Justice Dept. Lawsuit alleges that illegal recruiting took place in the form of instructing recruiters to use high-pressure sales techniques like playing on an applicant's psychological vulnerabilities and inflating claims of career placement opportunities to enroll students regardless of their qualifications.
A second pending whistle-blower lawsuit against EDMC has also been filed by The Government Accountability Office (GAO) alleging the school used every incentive to maximize enrollment by recruiting unqualified students who will not be able to repay their loans. The suit alleges recruiters were trained to mislead students about the types of jobs they could expect to get after graduation. The GAO released undercover video to build their case against EDMC and other for-profit colleges.
Exploitation of Veterans Benefits
The HELP Committee, led by Sen. Tom Harkin has been holding hearings with EDMC and other for-profit schools for targeting veterans returning from service with aggressive and sometimes fraudulent recruiting tactics. The GI Bill does not count against the law prohibiting the school funding not to exceed 90 percent of its income from federal loans. As a result, military money going to for-profit schools spiked dramatically. At EDMC, funding from the Department of Defense and Veterans Administration climbed from $2.04 million in fiscal 2009 to $52.4 million in fiscal 2010 and noted in a Frontline Investigation
Complaints About The Art Institute Schools in California and Other States
For-Profit Art Institutes of California Accused of Swindle
On April 11, 2012, a class action lawsuit was filed against The Art Institutes of California. The lead plaintiff who was seeking a Bachelor's degree in Interior Design alleged that admissions advisers as well as academic advisers misled her into thinking that the full cost of her degree ($89,000) would be covered by federal loans, grants, and scholarships but failed to disclose the maximum limit for her degree was approximately $57,500. She did not qualify for private loans to cover the difference and was subsequently forced to drop out of school with a $52,162 debt. Six Art Institutes of California campuses are named as defendants, including the Art Institute of California Sacramento, Los Angeles, Orange County, Inland Empire, Sacramento, along with San Diego and San Francisco.
A lawsuit filed in Texas state court by 145 students of The Art Institute of Houston alleges they were misled about the accreditation status of their program, diminishing their degrees’ value and leaving them with debts they could not repay. The case was settled for an undisclosed amount.
Former The Art Institute of Fort Lauderdale graduate Carrianne Howard went public about her degree in a Bloomberg Article alleging it was worthless and turned to stripping just to pay off her student loan.
Instructors at The Art Institute of Seattle raised questions about EDMC when they tried to join the American Federation of Teachers. The attempt to unionize lost in a 48 to 64 vote. Instructors objected to high-pressure marketing to students to take out loans they couldn’t afford and felt the quality of education suffered because the emphasis was on getting as many students as possible.
The Art Institute is also struggle financially. According to Project Censored.org EDMC has a debt and leverage rate of $1.496.1 million or close to $1.5 billion. Yet the company refuses to post any letter of credit as required by the government.