Dive Brief:

• A lawsuit filed Monday by Nebraska Attorney General Doug Peterson was settled Tuesday with an agreement from Education Management Corp. that it would forgive $203,000 in student loans for about 200 former students.
• The Lincoln Journal Star reports the lawsuit named Education Management and its affiliate schools, Argosy University, South University, Brown Mackie Education, The Art Institutes International, and the Art Institutes of Pittsburgh, all schools Nebraska students attended online.
• The lawsuit claims the schools used high-pressure, deceptive, and unfair recruiting tactics on prospective students, misleading students about program costs, job placement rates, and projected graduate salaries, though the for-profit admitted no wrongdoing in its agreement with the attorney general.

Dive Insight:

Education Management also agreed to a $95.5 million settlement with the federal government this week along with loan forgiveness for more than 80,000 former students that tops $100 million. The federal investigation found similar wrongdoing as was uncovered in Nebraska. The federal case included a consent agreement with state attorneys general from 39 states and the District of Columbia that requires Education Management to provide additional disclosures to students during the recruiting process. It also settled ongoing cases in a number of other states, according to Street Insider.