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American InterContinental University (AIU) is a for-profit university with campuses in Atlanta, Georgia and Houston, Texas. It also offers online programs for students who prefer distance learning. AIU offers associate, bachelor’s, and master’s degree programs in various fields such as business administration, criminal justice, healthcare management, information technology, and more. The university focuses on providing career-oriented education and offers flexible scheduling options for working professionals. AIU is accredited by the Higher Learning Commission.
AIU’s parent company, Career Education Corporation (now named Perdoceo Education Corporation) has been investigated by the U.S. Departments of Justice and Education and the Securities and Exchange Commission. Allegations specific to AIU include reports that the Los Angeles campus misrepresented its programs and classes, made a practice of admitting students who had not graduated from high school, and included in its enrollment numbers students who had never attended class. A CEC representative stated in July 2007 that the issues at AIU’s Los Angeles campus “have been addressed and most have long been resolved.”
One of the most outspoken critics of AIU and CEC has been AIU’s founder Steve Bostic, who alleged in 2005 that “CECO’s Board has allowed management to lose sight of the Company’s primary mission of providing quality education services; under these directors, CECO 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.”
On June 21, 2005, the U.S. Department of Education put a freeze on approving CEC’s new applications for additional campuses or acquisitions while it examined the company’s financial records and compliance with federal student aid regulations. This restriction was lifted in January 2007.
In 2009, AIU whistleblowers alleged that AIU enrolled students who were illiterate and did not possess high school degrees. In Diallo versus American Intercontinental University, students filed a class action lawsuit claiming that the school had defrauded them. The Georgia Appellate Court denied the class action, stating that each student must file a separate claim.
As of 2017, American Intercontinental University was under heightened cash monitoring by the US Department of Education “to provide additional oversight of cash management.”
On March 9, 2020, the Department of Veterans Affairs suspended G.I. Bill reimbursement eligibility for American InterContinental University and several other for-profit schools due to what the V.A. said were “erroneous, deceptive, or misleading enrollment and advertising practices”, giving the schools 60 days to take “corrective action”. The VA withdrew its threat of sanctions in July 2020.
