American Intercontinental University (AIU) is a for-profit untraditional university owned by Career Education Corporation (stock symbol CECO). Career Education Corporation was formed in 1994 for the purposes of acquiring as many for-profit schools as possible and then operating them under a more profitable business model.  Keep in mind AIU and other for-profit colleges exist for the sole purpose of generating a profit.  One should be aware that the goals and missions of these schools are very much different than that of traditional private or public schools.  Below are some key facts you need to know about AIU and its parent company Career Education Corporation.

 In December 2005 American Intercontinental University’s (AIU) accreditation was placed on probation by the Commission on Colleges of the Southern Association of Colleges and Schools (SACS). The commission calls probation "the most serious sanction, short of loss of membership" and "an indication of the gravity of non-compliance." SACS found 14 standards that AIU failed to meet. They are wide-ranging and include items related to recruitment materials, administrative competence, academic policies, program quality, transfer credit and academic record confidentiality. They were given one year to clean up their act. 

 One year later in 2006 SACS once again found AIU’s practices unacceptable by failing to correct all of the stated problems. The college was again placed on probation for a second year. In 2008, the college was able to get off probation status.


CEC's many legal and regulatory issues and investigations include: 
Federal
Department of Education program reviews
Department of Education's Office of Inspector General
Department of Justice
Securities and Exchange Commission
State agencies
California Attorney General
California Bureau for Private Postsecondary and Vocational Education
Florida Attorney General
New Jersey Department of Labor and Workforce Development
New York Department of Education
Pennsylvania Bureau of Consumer Protection of the Office of Attorney General
Accreditation bodies
Accrediting Bureau of Health Education Schools
Accrediting Commission of Career Schools and Colleges of Technology
Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges
Middle States Commission on Higher Education
Southern Association of Colleges and School
Legal action
Employment-related lawsuits
False Claims Act lawsuits
Shareholder lawsuits
Student class-action lawsuits
SOURCES: Harris Nesbitt Investment Bank; Chronicle reporting

 An alarming number of student and ex-employee complaints can by found all over the web. 

                                                                  

                                                            
           
                            The for-profit "School" business model 
                                                       High enrollment & Low Costs
 
Maintain a high volume of enrollment by:
 -Open enrollment (everyone gets in)
 -Target and attract students that qualify for federal financial aid
 -High investment in marketing (flashy website, pop-up ads, emails, mass media)
 -Large, aggressive sales force and numbers driven culture 

 Reduce operating costs by:
-Standardized cookie cutter curriculum
-Employing mostly part time instructors
-Hirer inexperienced, non-degreed workers or recent college grads to handle all of the vital support functions such as admissions,  financial aid, student advising, and career services
-Offer students the bare minimum needed for meeting accreditation standards.




I believe that CEC's Board has allowed management to lose sight of the Company's primary mission of providing quality education services; under these directors, CEC management has sacrificed the quality of student programs, resulting in the severe escalation of student attrition - all for the sake of a "top-line growth strategy" that cannot be sustained. 
  -Steve Bostic, AIU’s Former CEO and CEC’s Largest Share Holder

                                     
                                 
                                                  
                                   What the Media, Government and others are saying

For-Profit College: Costly Lesson
Steve Kroft From 60 minutes Reports Whether Or Not Career Colleges Pay Off
Read the article here

Promises and Profits
The Chronicle of Higher Education
Read the article 

The Student Trap
A must read article about AIU Read It

Testimony of Congresswomen Maxine Waters (CA-35) that was given to the U.S. House of Representatives Committee on Education and the Workforce Hearing on “Enforcement of Federal Anti-Fraud Laws in For-Profit Education”. Full Testimony 

Why Proprietary School Performance Data Doesn’t Add Up and What Can Be Done About It, A Consumer Law Center Report written by Deanne Loonin, Staff Attorney Read the full report

Class Action Law Suites filed against Career Education Corporation in 2006. It’s a lot of information, scroll to the middle of the page. Read the Report

Online University Consortium Research Indicates Corporate Preference for Traditional University Programs and Graduates Continues to Climb. Read the press release


Disputes Over Regulating For-Profit Colleges Come to a head in California
The Chronicle of Higher Education Read the article

Your Education, My Fortune.
A blog written by a concerned citizen hits it right on the head. Read the site

RippoffReport.com
Hundreds of complaints posted on this site about AIU Read the site

Some great insight about AIU can be found at this blog