Students sue school over Recruitment departments job placement promises.

http://studentloansblog.nextstudent.com/2011/09/12/recruiting-for-student-loans-leads-to-40-million-settlement-with-cooking-school/

Thousands of students who took out tens of thousands of dollars in student loans to attended San Francisco’s California Culinary Academy, one of 18 cooking schools in the Le Cordon Bleu for-profit college chain, may be getting some of their money back.

Under a pending $40 million settlement in state court, Career Education Corp., Le Cordon Bleu’s parent company, has agreed to offer rebates of up to $20,000 to approximately 8,500 students who attended the academy between 2003 and 2008.

In a class-action lawsuit, former students of the cooking school accused it of misleading them about the value of a culinary education and their job prospects after graduation. The students alleged the for-profit school defrauded them with promises of high-paying jobs and encouraged them to take on crushing debt from student loans for expensive programs but provided them with no more chance of finding a high-paying culinary job than someone who didn’t go to culinary school at all.

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Folks, this is EXACTLY what I have been saying all along about these schools.
This is a MAJOR recruiting tactic. Using Job placement promises, and future earning potential is a major tool to get students to sign up for these high priced trade schools.

It is high time SOMEONE hold them accountable. Too bad it had to be the students here, because I think it was the GOVERNMENTS job, to provide oversight on the schools to ensure this did not happen.

What the schools did, is commit FRAUD.
At least these kids got some relief. But notice the article does not say if they got complete relief.
If not, many may still find themselves in default and then they will suffer heavily as those who are in default, do.