A federal court has approved a $28.5 million class-action settlement involving Walden University and students who alleged that the for-profit institution misrepresented the costs associated with its Doctorate of Business Administration program.
Background of the Lawsuit
The lawsuit, filed in 2022, claimed that Walden employed strategies that misled Black and female students. Plaintiffs contended that the university minimized the credit requirements for the program, resulting in unexpected financial burdens for participants.
Reforms Needed in For-Profit Education
Tareion Fluker, one of the plaintiffs, highlighted the necessity for reforms in for-profit educational institutions to safeguard students against financial exploitation.
Predatory Practices Alleged
A key aspect of the case involved the capstone phase of the doctorate program, which plaintiffs characterized as predatory. They alleged that Walden intentionally prolonged this phase, thereby incurring additional costs for students. The lawsuit indicated that students were drawn into the program with promises of expedited completion, only to encounter arbitrary increases in credit requirements, often nearing $1,000 per extra credit.
Issues with Capstone Project Approval
The capstone project, which involves research and writing completed after coursework, was reportedly subject to extensive approval delays due to faculty rejections based on minor issues or vague feedback. This prolonged the process beyond what the university had initially advertised.
Discrepancies in Credit Requirements
Moreover, while enrollment advisers informed prospective students that 60 credits were needed for graduation, in practice, students in the program required an average of 94 credits, potentially resulting in extra costs estimated at approximately $34,300 per graduate.
Financial Impact on Students
Overall, Walden was accused of overcharging around 830 Black and female students by more than $28.5 million. The complaint further asserted that the university’s marketing efforts explicitly targeted Black students, concentrating its advertising budget in areas with significant Black populations, such as Baltimore, Washington, D.C., and Atlanta. This strategy included recruiting nontraditional student demographics who were disproportionately Black and female.
Commitment to Change
In addition to the financial settlement, Walden University has committed to revising its practices, which will include increased transparency regarding tuition, fees, and degree completion duration, as well as a more efficient capstone review process.
Recent Developments
Walden University was acquired by Adtalem Global Education in 2021, a decision that attracted scrutiny from higher education advocacy organizations. Following the acquisition, the institution reported a fourth consecutive quarter of enrollment growth, with total student numbers rising by 11.3% year-over-year as of June 30.
(Source: Higher Ed Dive)
