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For-Profit College Settles Class-Action Suit Over Minority Bias

A federal judge has approved a $5-million settlement in a class-action lawsuit accusing a for-profit health-and-technology college in Virginia of singling out needy minority students for enrollment and giving them worthless credentials, according to the Richmond Times-Dispatch.

The lawsuit accused the Richmond School of Health and Technology, now known as Chester Career College, of practicing a form of “reverse redlining,” deliberately recruiting and enrolling black students from low-income backgrounds who were eligible for bigger pools of federal student loans and grants.

A lawyer with the firm that brought the suit on the students’ behalf told the newspaper that more than 4,000 students who attended three of the institution’s campuses between July of 2004 and February of this year are eligible to file claims. The exact award depends on how many eligible students file such claims, he said.

A receptionist at the college told the newspaper that no one was available to discuss the lawsuit.

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