History About Keiser University Lawsuit You Need To Know


Keiser University, located in Florida, specializes in providing educational services at bachelor’s, master’s, and doctorate levels. In 1977, the current chancellor of the University, Authur Keiser, established a carrier school with his mother.

The original aim was to prepare people for jobs in business and healthcare fields. With the addition of extra award programs, the school transformed into an institute, college, and University.

Though it seems successful, one of the universities’ most popular things is the Keiser University lawsuit. Students complained about the University’s credits, accreditation, and costs, and the Keiser University lawsuit led to an investigation in 2010.

The University was responsible for misconduct. Besides, its huge costs left many graduates with substantial student loans.

Therefore, if you also were a student of Keiser and have a loan, you can benefit from student loan forgiveness. As one of the conditions is proving the organization’s mismanagement, you will be advantageous in your claim.

History Of Keiser University Lawsuit

Keiser University Lawsuit

Keiser University has been a controversial educational center since 2010. Keiser’s lawsuit made the Attorney General’s Office investigate this previously for-profit organization in the last decade.

When the Keiser University class action lawsuit started in 2010, it was a for-profit organization. Both on state and federal levels, the University faced severe examination. 

It all began when the national report of the Government Accountability Office unveiled general complaints and dissatisfaction with university procedures. For instance, they claimed that universities’ admission counselors mislead students. 

They offered student loan help and ensured that students did not need to pay federal loans. Also, they made them lie in the loan process.

Besides, the University was responsible for deceiving students about their accreditation, and Keiser University was not a direct party to that report. 

However, a massive scandal about for-profits put the Keiser University class action lawsuit on target, too. As a result, Keiser was on the list of thirty education centers that were investigated and blamed for misusing federal student loans. 

They wasted around 30 billion$ in governmental aid because those thirty universities stimulated first-year students to rely on federal loans. Keiser University’s lawsuit declared that the University convinced them to pay high tuition fees with loans taken from the government. 

These students suffer to make a student loan repayment. Besides, some people also claimed that universities became not-for-profit to be able to avoid taxes and strict regulations. 

Other students accused the University of lying about the cost of taking loans or accreditation. Transferring credits to another university was also controversial at the educational center.

Keiser University Lawsuit Results

As expected, the university officials, including the founder, rejected all claims. They did not admit any misconduct or malpractice. They insist that the Accountability report is biased and overgeneralizes all educational centers in the sector. 

However, in the end, they agreed to obey the changes required as a part of consumer protection. These changes also apply to Everglades and Southeastern Universities.

Everglades is the organization that merged with the University after University lawsuit.

Therefore the University became a non-profit organization. The spokeswoman of Keiser University mentioned that their agreement with the changes does not indicate that the University conducted any wrongdoing. 

The only reason for the deal is that they wanted to end the Keiser University class action lawsuit. In this way, the organization will be able to shift its focus entirely to the education and training of the young generation.

After two years of scrutiny and long discussions, the University took responsibility as required in the Keiser University lawsuit.

  • They agree to retrain former students who withdrew entirely for free for the last two years. The reason for withdrawing should be dissatisfaction with the university services to be eligible for retraining.
  • The organization ensures its admission counselors do not lie or manipulate the University’s offerings. 
  • The University cannot utilize full accreditation as a promotional tool. Besides, they can not pressure students by claiming that the places are limited or highly demanded.
  • Keiser should inform students that their credits might not be transferable if they want to continue in another educational organization.

Keiser University Class Action Lawsuit – Telemarketing

Don’t think the Keiser University class action lawsuit ended with the changes they agreed to make. People accused them of improper marketing practices.

As mentioned in the trial, Keiser University owned a department with around 350 so-called “admission counselors.” They called people several times a day to persuade them to attend the University.

As they did not get the explicit consent of those people, some of them initiated a Keiser University lawsuit. This promotional attempt is pretty standard in the sector. However, the University is non-profit.

Despite this, the University still earns many profits and is highly lucrative. While the investigation continued, the university officials did not respond to the claims extensively.

Is Keiser University For or Not-for-profit?

After the gainful employment program of the Obama Administration, Keiser University became a non-profit organization. The program aimed to cut off funding that career training centers received.

The reason was that students could not pay high costs for these programs. However, a non-profit organization could get funds created by taxes, while a for-profit one could get 90%.

Besides, not-for-profit universities could enjoy benefits like tax exemptions. Some people, like the deputy undersecretary of the Department of Education, claim that the administration uses university revenues and student loans for personal gains.

We cannot indeed say whether Keiser University switched from for-profit to non-profit, but this issue led to some skeptical criticisms.

Credit: Student Loan Resolved

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