A former for-profit college operator settled with the U.S. Department of Education for $8 million as part of the company’s bankruptcy case, attorneys announced last week. The settlement is the final step in a years-long case that began after FCC Holdings Inc. was accused of predrawing federal financial aid dollars based on enrollment projections that never materialized.
FCC Holdings used to operate 41 for-profit colleges under names including Florida Career Colleges and Anthem Education. It sold several of those colleges to another owner that continues to operate them. FCC Holdings closed other campuses when it filed for bankruptcy protection in 2014.