Dive Transient:
- Union Institute & College has appealed the U.S. Division of Training’s choice to high quality it $4.3 million and lower off its entry to federal monetary support, an company spokesperson confirmed Monday.
- The Training Division has accused Union Institute of taking in roughly $43,500 extra in Title IV monetary support than it was entitled. This compounds the personal Ohio nonprofit’s monetary troubles because it faces lawsuits alleging it missed payroll and lease funds.
- Shedding Title IV cash might deal a deadly blow to Union Institute. The college didn’t reply to a request for remark Tuesday.
Dive Perception:
Union Institute has grabbed headlines all yr after its staff started complaining publicly that they weren’t receiving their paychecks. In April, a Union Institute worker filed a class-action lawsuit over the missed pay. The case is ongoing.
Its enrollment had additionally tumbled from 1,666 college students in fall 2012 to 787 in fall 2022, based on federal information.
However the Training Division argues Union Institute’s issues run a lot deeper. The company stated in a letter final month that the establishment had as soon as once more stopped paying its staff, this time since August.
The faculty additionally abused federal pupil support, earmarking a few of t it to cowl different sorts of bills, the Training Division alleged.
By regulation, Union Institute wanted to pay college students or mother and father any surplus federal monetary support after making use of tuition and different charges. However the college as a substitute tapped that cash to pay for the establishment’s personal bills, the Training Division stated.
Additional, the institute took out $43,500 extra in monetary support than it wanted, most of which it has not paid again, the company stated.
Union Institute has maintained it can stay open, regardless of the turmoil. The faculty’s web site advertises for lessons beginning in January.
