Florida Career College (FCC), a for-profit institution specializing in healthcare and IT programs, is set to close its doors permanently by February 15th. This announcement, confirmed by a college representative to state regulators on Thursday, comes on the heels of a significant decision by the U.S. Department of Education to terminate FCC’s access to federal financial aid.
The Department of Education’s decision to cut off federal funding was the critical blow leading to the closure. For the 2021 fiscal year, Florida Career College heavily relied on Title IV funds, with over 87% of its revenue, totaling more than $86 million, originating from these federal aid programs. The department’s action was triggered by accusations of misconduct related to ability-to-benefit (ATB) tests, designed to assess the eligibility of students without a high school diploma for federal financial aid.
The controversy surrounding Florida Career College centers on the integrity of these ability-to-benefit tests. Specifically, the Education Department accused FCC of manipulating testing materials to inflate student eligibility for federal aid. These allegations first surfaced publicly in 2020 when the Republic Report, a non-profit news organization, published accounts from former Florida Career College employees. These employees claimed to have witnessed instances of doctored and falsified ATB tests within the institution, suggesting a pattern of enrolling students who might not otherwise qualify.
A subsequent investigation by the Education Department in 2023 corroborated these claims. The investigation revealed that FCC proctors were actively involved in test manipulation, including taking tests on behalf of students, altering answers, and permitting the use of calculators in violation of standardized testing protocols. The department further alleged that college officials and executives at International Education Corp. (IEC), the parent company of Florida Career College, were aware of and even encouraged these unethical practices to maximize student enrollment numbers and, consequently, revenue.
The reliance on ability-to-benefit tests was substantial at Florida Career College. According to the Education Department, over 40% of the student body gained admission through these tests. However, data indicated a concerning trend: between 2016 and 2021, more than half of these students withdrew from their programs before completing their 10-month certificate programs. This high dropout rate further fueled scrutiny of the college’s practices and student outcomes.
In April of last year, the Education Department initially signaled its intention to curtail federal aid access for Florida Career College, setting a preliminary cutoff for September 2023. While this deadline was later extended to January 2024, Florida Career College was prohibited from enrolling new students who relied on federal financial aid during this extension. This gradual withdrawal of federal funding ultimately proved unsustainable for the institution’s operations.
Despite the overwhelming evidence and the Education Department’s findings, Florida Career College officials have consistently denied the accusations of wrongdoing. However, facing the definitive loss of federal funding, the college announced its impending closure at a meeting of the Florida Commission on Independent Education. The news was initially reported by the Republic Report.
At the meeting, Dannys Rabelo, regional director of regulatory compliance for International Education Corp., stated, “I am pleased to report that we are conducting an orderly closure with integrity and quality.” He emphasized the institution’s commitment to ensuring current students complete their programs, describing it as a responsible “teach-out” approach, though acknowledging the financial strain of this decision.
International Education Corp., the parent company of Florida Career College, also operates other educational brands, including United Education Institute (UEI) and UEI College, as well as the unaccredited U.S. Colleges and Sage Truck Driving Schools. The closure of Florida Career College marks a significant event in the for-profit education sector and underscores the critical role of federal oversight in maintaining ethical standards and protecting student interests.
