Education Corporation of America
| Company type | Private |
|---|---|
| Industry | Education |
| Founded | 1999 |
| Defunct | 2018-12-07 |
| Fate | Closed following loss of accreditation; filed Chapter 11 bankruptcy in 2020 |
| Headquarters | Birmingham, Alabama , United States |
Area served | United States |
| Products | Associate degrees, certificates, diplomas, bachelor's degrees, master's degrees |
Education Corporation of America, headquartered in Birmingham, Alabama, was a private enterprise managing proprietary colleges throughout the United States. Its operations encompassed three distinct educational systems with a total of 31 campuses, alongside one online institution and four related business entities. The organization halted its activities suddenly following the loss of accreditation on December 4, 2018, with shutdowns commencing on December 7.
Schools
The institutions under ECA provided a variety of academic credentials including associate degrees, certificates and diplomas, as well as bachelor's and master's degrees through both physical campuses and online delivery methods.
Ecotech Institute
Located in Aurora, Colorado, Ecotech Institute was a two-year vocational college specializing in training for the clean energy sector. Its curriculum featured associate degree programs in areas such as business administration with an emphasis on sustainability, electrical engineering technology, energy efficiency, facility management technology, power utility technician training, renewable energy technology, solar energy technology, and wind energy technology.
Golf Academy of America
Established in 1974, the Golf Academy of America was a two-year institution dedicated to golf education and related business management. It offered an associate degree focused on golf complex operations and management, along with a bachelor's degree program delivered in collaboration with Virginia College.
Virginia College
Operating primarily across the Southeastern United States, Virginia College functioned as a network of private for-profit post-secondary schools. It provided a range of credentials including certificates, diplomas, and degrees in disciplines such as health sciences, medical fields, information technology, business administration, office management, cosmetology, and criminal justice. Additionally, Virginia College offered various online degree options.
Culinard, the culinary division of Virginia College, maintained campuses in multiple locations including Baton Rouge (LA), Birmingham (AL), Chattanooga (TN), Greensboro (NC), Greenville (SC), Jacksonville (FL), Mobile (AL), Richmond (VA), and Savannah (GA). It delivered diploma and certificate programs in Culinary Arts and Pastry Arts at select sites. An associate degree in Culinary Arts was also available online under specific conditions, such as prior formal culinary education.
Accreditation
Campuses of Virginia College, Golf Academy of America, and Ecotech Institute were accredited by the Accrediting Council for Independent Colleges and Schools, a national accrediting agency authorized to confer certificates, diplomas, and associate degrees. Certain locations also held accreditation to award bachelor's and master's degrees. The New England College of Business and Finance possessed regional accreditation from the New England Association of Schools and Colleges.
Mississippi disputes
In February 2011, fourteen former attendees of ECA's Virginia College located in Jackson, Mississippi initiated legal action concerning the institution's failure to secure full accreditation for its practical nursing program from the Mississippi Community College Board. While initial accreditation had been granted, the program awaited complete approval. The plaintiffs argued they were not adequately informed that without full accreditation, eligibility to sit for the nursing licensure examination was denied. The college refuted any intent to deceive, emphasizing that students had signed documents acknowledging the incomplete accreditation status and agreeing to arbitration instead of litigation. In October 2011, a judge upheld this arbitration agreement, thereby precluding a jury trial. Subsequently, on April 20, 2012, the Mississippi Community College Board officially granted full accreditation to the practical nursing program at Virginia College.
In October 2011, a separate lawsuit was filed by students enrolled in the surgical technology program who asserted similar allegations of misrepresentation regarding program accreditation. They also claimed fraudulent charges for dormitory and cafeteria services that were not available on campus. The institution denied these accusations and pointed out that several graduates from the program had secured employment as surgical technicians. Furthermore, state regulations do not mandate program accreditation as a prerequisite for working in this profession.
National spotlight
Federal investigations in 2010 uncovered widespread malpractices within the for-profit education industry; however, ECA-affiliated schools were neither subjects of inquiry nor implicated. These investigations highlighted recruiters targeting vulnerable groups—including minorities, veterans, homeless individuals, and low-income populations—with promises of expedited degrees and career opportunities, frequently resulting in students being ill-prepared and saddled with federal debt. In response, the Obama administration introduced proposals in 2011 aimed at tightening regulations to curb exploitative practices within the sector. Owners of ECA actively participated in lobbying efforts that contested findings from a Government Accountability Office report, leading to modifications of some conclusions. During this time frame, Senator Tom Harkin, who chaired congressional hearings on for-profit institutions, claimed he received threats from Avy Stein, a partner at the private equity firm owning ECA; Stein denied these allegations. Ultimately, concerns about unfairly penalizing legitimate schools prompted the Education Department to scale back its original standards for assessing institutions’ effectiveness in preparing students for employment.
On January 6, 2020, Education Corporation of America was forced into Chapter 11 bankruptcy following creditor pressure. By 2022, schools affiliated with ECA—namely Brightwood College, Brightwood Career Institute, and Virginia College—were named among 153 institutions involved in a student loan forgiveness settlement tied to allegations of fraud. This class-action suit encompassed over 200,000 borrowers and was supported by Harvard Law School’s Project on Predatory Student Lending through its Legal Services Center. The August 2022 agreement acknowledged "substantial misconduct" by the implicated institutions. In April 2023, the Supreme Court allowed the $6 billion debt cancellation settlement to move forward by dismissing a legal challenge against it.
External links
- Articles with short description
- Education companies founded in 1999
- Education companies closed in 2018
- Businesses that filed Chapter 11 bankruptcy in 2018
- Companies located in Birmingham, Alabama
- Educational institutions in the United States
- Privately owned firms based in Alabama
- 1999 establishments in Alabama
- 2018 closures in Alabama
- Education-related fraud cases in the United States
- Education companies disestablished in 2018