Keiser University Class Action Lawsuit

Keiser University class action lawsuit

Keiser University, located in Florida, is specialized for providing educational services in bachelor, master and doctorate levels. In 1977, the current chancellor of the University, Authur Keiser established a carrier school with his mother. The original aim was preparing people for jobs in business and healthcare fields. With the addition of extra award programs, the school transformed to institute, college and the University, subsequently. Though it seems successful, one of the most popular things about the University is Keiser University class action lawsuit. Students made many complaints about credits, accreditation, or costs of the University. 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 mismanagement of the organization, you will be advantageous in your claim. 

History of Keiser University Class Action Lawsuit

keiser university class action lawsuit

Keiser University has been a controversial educational center since 2010. Keiser 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 level, the University faced a severe examination. It all began when the national report of Government Accountability Office unveiled broad complaints and dissatisfaction with university procedures. For instance, they claimed that universities’ admission counselors mislead students. They offered student loan help and ensures that students do 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. Keiser University was not a direct party of that report. However, a massive scandal about for-profits put Keiser University class action lawsuit on target, too.

As a result, Keiser was on the list of thirty education centers that investigated blamed for misusing federal loans given to students. They wasted around 30 billion$ governmental aid because those thirty universities stimulated first-year students to rely on federal loans. Keiser University 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 University became not-for-profit to be able to avoid the taxes and strict regulations. Other students accused the University of lying about the cost of taking loans or accreditation. The transfer of credits to another university was also the controversial issue of the educational center.

Keiser University Lawsuit Results

keiser university results

As expected, the university officials, including the founder, rejected all claims. They did not admit any misconduct or malpractice. They insist that the report of Accountability is biased and overgeneralize 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 Keiser lawsuit.

  • They agree to retrain former students who withdrew during the last two years entirely for-free. 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 that 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.” What they did was calling 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 type of promotional attempts is pretty common in the sector. However, the University is non-profit. Despite this fact, the University still earns many profits and highly lucrative. While the investigation continued, the university officials did not respond to the claims extensively. 

For or Not-for-profit?

Keiser University class action lawsuit

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 were unable to pay high costs for these programs. However, a non-profit organization could get funds created by taxes entirely, while a for-profit one could get 90% of them. Besides, not-for-profit universities could enjoy benefits like tax exemptions. Some people, like the deputy undersecretary of the Department of Education, claimed that the administrative uses university revenues and student loans for personal gains. We cannot surely say whether Keiser University switched from for-profit to non-profit, but this issue led to some skeptical criticisms.


Debt rates

The debt rates of students at Keiser University is so high that it is not surprising why it has many lawsuits. More than 70% of undergraduate students paid their fees with federal loans. The amount of debt of them, on average, is around 10 000$. However, the average student loan debt rate is almost 7 000$ for first-year students. We can conclude that the University offers aid packages to motivate students to enter, and then get higher fees from returning students.

When a student graduates, he collects around 40 000$ debt. Besides, the default rate of student loans is more than 13%. You can be able to compare it if you know that at the national level, this number is just 7%. When students cannot make a payment for 270 days, then the student loan debt is considered to default. 

Student Loan Forgiveness

keiser university results

You entered the University with high hopes to get an education and live a better life. You wanted to make your and your beloved ones’ lives easier. However, you ended up with high debt, around 40 000$. This scenario is actual for many graduates of Keiser University. Therefore, many students suffer from an enormous debt to income ratio.

Nevertheless, there is a high probability that you can get part or all of your loans forgiven. Keiser University class action lawsuit put it to the target of governmental scrutiny. Even, another Keiser University lawsuit claimed the organization misused federal loans and provided false information. These conditions are enough to be a reason for a student loan forgiveness. You are not destined to suffer from loan payments. We will help you in every stage of the documentation and offer you any help you need. If you want a magic wand to help you with a loan, take a step, and contact us today.



What is My Best Option?

It is hard to say without considering the challenges a borrower faces. One of the best options for Keiser University students can be the Borrowers’ Defense to a Repayment program. As the university was already accused of a Keiser University scam, such as lying about accreditation, there is a high chance that your application will be approved by the Department of Education. However, the most reliable way to find out your options is by contacting our experts. They will consider all the factors of your debt issue and come up with suitable solutions.

Which Keiser University Forgiveness Options Exist?

You have access to several programs. Borrowers’ Defense to Repayment is one of Keiser University student loan forgiveness opportunities. So, if you have faced any school misconduct, you can utilize this way of debt relief. Another option can be a disability or closed school discharge if you meet the eligibility criteria. Depending on your work, you can also apply service-based debt elimination, such as Public Service Loan Forgiveness. 

How Can I Get an Approval for Borrowers’ Defense?

If you want to apply to the Keiser University loan forgiveness program through Borrowers’ Defense, it is advisable to get familiar with all the requirements and selection process. In general, it is necessary to prove that the university engaged in misconduct, and otherwise, you would not have decided to study there. Collect many proofs such as the recruiters’ email messages to support your argument that the school misled you. 

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