More than 12,000 students eligible for settlement relief
FRANKFORT, Ky. (Oct. 27, 2015) — Former Daymar College students who are part of the $12.4 million settlement announced last month by Attorney General Jack Conway and his Office of Consumer Protection will soon be receiving claim packets. The first claim packets were mailed today.
Daymar College, a career college based in Owensboro, was accused of misleading students about transferring credits and financial aid, while hiring unqualified instructors and admitting students who failed to reach minimum entry requirements.
The settlement resolves three years of litigation and the consumer protection lawsuit filed by Conway in 2011. The settlement provides debt relief and/or cash payments and strong injunctive terms governing Daymar’s future operations. It’s estimated that 12,294 former Daymar students are eligible for settlement relief.
“This settlement with Daymar will provide much-needed relief for former students and protection for students considering enrolling in Daymar in the future,” said Conway. “I encourage all qualifying students to file a claim and participate in this long-awaited settlement.”
Under the terms of the consent decree announced by Conway on Sept. 10, $1.2 million will be distributed to former Daymar College students that submit claim forms and are qualified participants. A “qualifying student” is a student that started a term of study at a Kentucky Daymar campus beginning July 27, 2006 through July 27, 2011 and completed at least one term of study at a Kentucky Daymar campus during this time period. Any qualifying student wanting to participate in the distribution must provide the information requested on the claim form and return it to the administrator by first class mail postmarked no later than Dec. 10. Any qualifying student that does not provide a claim form by the deadline will not be entitled to participate in the distribution. Click this link to read the general terms of the consent decree: http://migration.kentucky.gov/Newsroom/ag/daymarsettlement.htm.
The claims administrator will divide $1.2 million by the total number of school terms that qualified claimants completed during the qualifying period. This dollar amount per completed term shall be distributed to each qualifying student who has submitted a claim.
In addition to providing $1.2 million in cash distributions, the consent decree requires Daymar to forgo collection of $11 million that qualifying students owe to Daymar College. Students do not need to file a claim to be awarded this benefit, but they must file claims to receive a cash distribution.
If Daymar stopped collection on any student loans of more than $1,000 for any qualifying student, that student will not be eligible for a payment from the reimbursement fund. If Daymar stopped collection on loans totaling less than $1,000, qualifying students are eligible for a distribution based on the number of terms completed at a Kentucky Daymar campus during the qualifying period.
For questions about the claim process, you may call the claims administrator at 1-844-814-8813 or visit the website www.DaymarCollegeSettlement.com for further information.