Daymar Colleges Group, headquartered in Owensboro, Kentucky, has reached a resolution with Kentucky Attorney General Jack Conway to close an inquiry into Daymar’s past operations.
After producing more than 400,000 documents and providing witnesses to testify on every subject raised in the complaint, this matter has been settled without trial, without any finding of law or fact, and without any finding of wrongdoing by Daymar. From the beginning, Daymar emphatically denied the allegations in the complaint and nothing in the Consent Decree changes our position on this issue.
“Daymar’s decision to resolve these claims is not an admission of any wrongdoing,” said Daymar President and Chancellor Dr. Dan Peterson. “Our company policy has always demanded adherence to all laws, rules, and regulations everywhere we operate and we take our compliance obligations very seriously. This is a decision to avoid the continued expense and time associated with litigation so that we can fully focus on educating our students.”
Key Details of the Resolution Include:
- Daymar will make a $1.4 million payment to the Office of the Attorney General to be paid in 15 monthly installments.
- The AG will keep $200,000 to cover attorney’s fees and the cost of the seven-year investigation.
- The remaining $1.2 million will go into a fund to be paid out to certain Daymar students who attended Daymar campuses between July 27, 2006 and July 27, 2011.
- Daymar will also pay $250,000 to a compliance monitor appointed by the Attorney General who will work with Daymar to ensure all parts of the Consent Decree are properly implemented.
- Daymar will forgo efforts to collect $11 million still owed by former students with a final last day of attendance between July 3, 2006 and July 26, 2012.
- Note: this agreement does not extend to any money students may owe to the federal government or federal student loans.
- Daymar has agreed to a number of non-monetary terms, many of which are already standard practice.
- For example, Daymar will continue to disclose to students the cost of their education and continue to inform students what charges their financial aid funds will cover.
- Daymar has voluntarily decided to go above and beyond what is required by state regulators, federal regulators, and our accreditors.
“The Daymar family is glad to finally put this matter to rest,” said Peterson. “We have used this experience to review our best practices and remain confident as we continue to add value to the communities in which we serve.”
Daymar is pleased to report our new student enrollment increased by approximately 30% this year. We are proud of our 430 recent graduates who are now prepared to serve our communities. In addition, we are excited to announce that we are moving into a new campus location in Nashville, Tennessee and moving our Lancaster, Ohio campus to Columbus. Both locations offer bigger facilities, improved technology, and are more centrally-located to better serve our growing student population, all of which will allow us to continue expanding our program offerings and enhance the communities in which we live.
We want to be good stewards in the communities we serve. Our students, faculty and staff are actively involved in local organizations and events. Just this year alone, we supported such local organizations as the Boys and Girls Club, Habitat for Humanity, the Red Cross Blood Drives, and the 100 Men Who Cook competition. We also host a variety of events to support our students, including a Back-to-School supply drive that helped 500 students receive needed school supplies.
Daymar College looks forward to continuing to build a strong future and providing a quality education to our students.
View a message from Daymar Chancellor and CEO, Dr. Dan Peterson