Daymar to repay $1.2 million to 3,500 former Kentucky students

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On Wednesday, Dec. 14, Attorney General Andy Beshear announced that nearly 3,500 former students of Kentucky campuses and Daymar College’s online programs will begin receiving restitution checks totaling $1.2 million this week. The payments are issued by the claims administrator appointed to handle the case, pursuant to a settlement the attorney general’s office reached with Daymar in 2015, resolving a consumer protection lawsuit.

As part of its settlement, Daymar has already forgiven $11 million in student debt to nearly 6,500 qualified students. The average loan forgiveness amount was $1,700. “University has never been more unaffordable and students are crushed with debt,” Beshear said. “The Attorney General’s Office ensures that Kentucky students are treated fairly. Every week, our office seems to get a call from a former Daymar student who wants a final judgment in this case. I am pleased that our office was able to announce that these students will receive compensation.

Beshear said the average amount of restitution payable to the nearly 3,500 students who attended a Daymar campus in Kentucky between July 27, 2006 and July 27, 2011 and who filed a claim is about $345. Refund amounts are based on the number of terms students have completed at Daymar during the relevant period and the number of approved applications that have been submitted.

Some students who have received debt relief are also eligible for a cash payment. Under the settlement, however, students receiving more than $1,000 in debt relief were not eligible for cash payments.

The lawsuit, filed in 2011 by the attorney general’s office, alleged that Daymar College violated Kentucky’s consumer protection law by:

• Denying students access to financial assistance to purchase their textbooks from vendors other than Daymar’s bookstore, who allegedly charged significantly higher prices than other vendors.

• Distort the ability of students to transfer credits earned at Daymar to other institutions.

• Admission of students who have failed Daymar’s admissions assessment in violation of the school’s admissions policy.

• Hiring of unqualified teachers who did not have the required diplomas.

Students receiving restitution and debt relief attended Kentucky Daymar campuses in Albany, Bellevue, Bowling Green, Clinton, Louisville (two sites) Madisonville, Owensboro, Paducah, Russellville, and Scottsville.

While most Daymar locations in Kentucky have closed, the college remains open and enrolls new students in online and ground-based programs in Bellevue and Bowling Green. The Daymar locations in Madisonville, Owensboro, and Russellville are no longer enrolling new students but remain open to complete programs for students currently enrolled at those locations. Daymar also offers online programs and campuses in Ohio and Tennessee.

Daymar has denied violating Kentucky consumer protection law and, in agreeing to settle the lawsuit, continues to deny any wrongdoing.

Daymar also agreed to make changes to its business practices overseen by a court-appointed compliance monitor, former Tennessee Attorney General Robert Cooper Jr. Cooper will continue to monitor Daymar’s operations through 10 September 2017.

For questions regarding the claims process, students can call the Claims Administrator at 844-814-8813 or visit DaymarCollegeSettlement.com.

Daymar’s Bowling Green College remains open and accepting new students. Daymar locations in Madisonville, Owensboro, and Russellville are no longer enrolling new students, but remain open to complete programs for currently enrolled students.

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