National Student Legal Defense Network reposted this
In 2018, Meredith Kolodner and Sarah Butrymowicz published a heart-wrenching investigation in the Hechinger Report and the New York Times on La James International College. Former Iowa Attorney General Tom Miller settled a major case against the school, recovering millions of dollars for students. But as the years went on, the Iowa AG’s office and our team at Student Defense heard from more and more students. Students reported that the for-profit chain of cosmetology schools was delaying disbursement of financial aid living stipends, often for many months. Delayed payments of a few thousand dollars may not seem like a big deal to some—or enough for a major lawsuit. But for La James students this meant that many didn’t have money for food or rent when they needed it. We had to do something to help our clients and we wanted to show that such actions by colleges violates state consumer protection laws. After several years and appeals, we are proud to announce that the court granted final approval to a settlement that will compensate students with $1500 each if they saw their payments delayed. This should be a warning to school across the country that delaying stipends for basic needs is likely actionable. https://lnkd.in/eXDHtn66