State files suit against nursing school

Published: Wednesday, April 13 2005 12:00 a.m. MDT

After receiving citations from the State Division of Consumer Protection, being forced to shut down and leaving students with the tab, the Academy of Nursing faced more trouble this week.

The State Division of Consumer Protection filed suit against the Academy of Nursing for the use of student-tuition checks — money that Utah students secured with KeyBank loans — far in advance of the three months' worth of payments allowed by the state pay-as-you-go law for post-secondary proprietary schools.

Francine Giani, director of the Consumer Protection Agency, told the Deseret Morning News at least 92 students in Utah and possibly many more around the country are owed as much as $2.5 million, money they paid the academy up front in lieu of services.

The division is requesting a $90,000 fine for "deceptive acts and practices" at the school by academy founders Aaron and Mark Hansen.

The Hansens were cited in January by the State Division of Consumer Protection for collecting too much tuition up front from students.

The school was officially closed Feb. 11 after the Hansens declined to appeal the citations but were unable to refund students.

Last month, Giani said, she was working on some "long shots" in the private sector to find a way for academy students to continue their nursing education.

The Hansens were cited in January by the State Division of Consumer Protection for collecting too much tuition up front from students, who are estimated by the state to be out upwards of $2.5 million.

Students, who received their school loans from KeyBank, and the loans were disbursed directly to the academy, are currently working on getting some of the loans forgiven.


E-mail: terickson@desnews.com

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