Lawsuit Against ‘Trump University’

Career College Central summary:

  • On Saturday, the New York State attorney general's office filed a lawsuit against Donald Trump's eponymous real estate school, The Trump Entrepreneur Initiative — formerly known as Trump University. As Trump faces civil litigation and demands for at least $40 million in restitution, the legal actions points another harsh spotlight on the for-profit education industry.
  • Trump's operation officially renamed itself The Trump Entrepreneur Initiative in 2010 after the New York State department of education announced that the institute's use of the term "university" was "misleading" and possibly illegal. Even with its new name, Trump's school made the same promise: that it would teach students "a systematic method for investing in real estate."
  • According to the NY attorney general's office, however, the entire program amounted to an expensive "bait-and-switch" that charged between $1,495 and $35,000 for ineffective courses and programs that were neither designed nor overseen by Trump. Trump's lawyers have claimed that the lawsuit was politically motivated, and that 98 percent of the program's students wrote positive reviews of it. The Better Business Bureau is less impressed: It gives Trump's school a B- grade, noting that it had 15 formal complaints lodged against it, two of which have yet to be resolved.

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