Dive Brief:
- Dade Medical College became a for-profit empire in Florida since its 1999 founding, but all six of its campuses — along with two at its affiliate school, University of Southernmost Florida — are now closed.
- The Miami Herald reports the U.S. Department of Education’s move to put Dade and USMF on heightened cash monitoring may have been the decisive blow, as the schools didn’t have enough money in reserves to cover costs until the department approved reimbursement.
- In recent weeks, the college had bounced checks, announced closure of one of its main programs on three campuses, and faced a $4.6 million fine following a lawsuit over student loans.
Dive Insight:
The Miami Herald has reported extensively on the sometimes shady business practices of Dade Medical. Its leaders contributed extensively to state and federal candidates, making powerful allies who went on to pass laws that made it easier for for-profit schools to grow.
College Founder and Chairman Ernesto Perez is expected to be arrested for violating campaign finance laws and continues to face a criminal investigation for financial irregularities in connection with student loans. Student outcomes at his schools have been low, and unaccredited programs prevent some graduates from being able to work in their fields, even if they pass licensing exams. All of the campuses announced the closure Friday and closed their doors for good at the end of the day.
