Kaplan College To Refund Financial Aid 

Source: For-Profit College Kaplan To Refund Federal Financial Aid Under Settlement With United States

The Department of Justice began investigating Kaplan after a whistleblower, Leslie Coleman, filed a quitam lawsuit under the False Claims Act accusing Kaplan of employing unqualified instructors to teach Medical Assistant courses at its San Antonio campuses.  The suit alleged that Kaplan knowingly requested, received, and retained federal tuition funds for courses taught by individuals who did not meet the minimum requirements established by Texas law.  Following the United States’ investigation, the parties negotiated a settlement pursuant to which Kaplan will pay $1,329,753.25 to resolve the whistleblower claims.  The majority of the settlement – roughly $1,077,000 – will be paid in the form of tuition refunds.  These refunds will benefit 289 students, whose student loan debt will decrease as a result of the settlement.


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