American InterContinental University (AIU) is a private for-profit university with its headquarters in Chandler, Arizona. It employs open admissions. American InterContinental University is a member of the American InterContinental University System. The System is accredited by the Higher Learning Commission. The university awards associate, bachelor's, and master's degrees. The System is owned by the for-profit company Perdoceo Education Corporation, publicly traded on the NASDAQ under PRDO and formerly known as Career Education Corporation (CEC).
History American InterContinental University (AIU) was founded in 1970 in Lucerne, Switzerland, by American couple Jack and Helen Barnette of Atlanta, and was first known as the American Fashion College of Switzerland. The school was recognized as an American degree awarding institution in 1971, initially offering associate and bachelor's degrees starting in 1974. In 1976, the Switzerland-based school opened a campus in Atlanta (the American College for the Applied Arts) and, in 1978, the Lucerne campus moved to London and changed its name to the American College in London.Rhone, Nedra. "'Mad Men' Makes A Fashion Statement". Cox News Service. The Atlanta Journal-Constitution. September 19, 2008.
By 1978, the school had approximately 300 students, and began to expand its course offering beyond fashion to areas such as commercial art, interior design, and business. The school opened several other campuses in subsequent years. Steve Bostic bought the school in 1996 and changed its name to American InterContinental University."Career Education curbs lifted; U.S. again allowing expansion, firm says" Chicago Tribune January 23, 2007 In 2001, AIU was acquired by its current owner, Career Education Corporation, which is a publicly traded operator of for-profit schools.
Branch campuses were founded as follows:
Atlanta – Buckhead, Georgia campus (1976) London, United Kingdom campus (1978) Los Angeles, California campus (1982)FASHION 88;GRADUATE CLASS;NEW PATTERNS ON DISPLAY AT DESIGN SCHOOL SHOWS Los Angeles Times June 3, 1988, Friday, Home Edition Dubai campus (1995, founded as the American University in Dubai) Atlanta – Dunwoody campus (1998) South Florida campus (1998) Online campus (2002) Houston, Texas campus (2003)
In 2009, AIU had over 15,000 students and offers a wide range of undergraduate and graduate degrees in programs such as business, IT, criminal justice, healthcare management, education, and media production. More than 80 percent of AIU students attend AIU Online, an internet-based online campus that delivers degree programs 100 percent online. Also in 2009, the school has 54 full-time instructors and 594 part-time instructors.
In March 2019, Career Education Corporation acquired Trident University International, an online for-profit college with approximately 4,000 students, and planned to merge this acquisition into American InterContinental University.
In March 2020, Capitol Forum reported that the U.S. Department of Education allowed AIU to defer $39 million in Title IV money to avoid violating the 90-10 rule.
Investigations and controversies AIU's parent company, Career Education Corporation (now named Perdoceo Education Corporation) has been investigated by the U.S. Departments of Justice and Education and the Securities and Exchange Commission. Allegations specific to AIU include reports that the Los Angeles campus misrepresented its programs and classes, made a practice of admitting students who had not graduated from high school, and included in its enrollment numbers students who had never attended class. A CEC representative stated in July 2007 that the issues at AIU's Los Angeles campus "have been addressed and most have long been resolved."The student trap: As American InterContinental University fights to keep its accreditation, students on the Buckhead campus wonder if they've received the education they paid for, by Alyssa Abkowitz, Creative Loafing Atlanta, July 11, 2007.
One of the most outspoken critics of AIU and CEC has been AIU's founder Steve Bostic, who alleged in 2005 that "CECO's Board has allowed management to lose sight of the Company's primary mission of providing quality education services; under these directors, CECO management has sacrificed the quality of student programs, resulting in the severe escalation of student attrition – all for the sake of a 'top-line growth strategy' that cannot be sustained."
On June 21, 2005, the U.S. Department of Education put a freeze on approving CEC's new applications for additional campuses or acquisitions while it examined the company's financial records and compliance with federal student aid regulations. This restriction was lifted in January 2007.
In 2009, AIU whistleblowers alleged that AIU enrolled students who were illiterate and did not possess high school degrees. In Diallo versus American Intercontinental University, students filed a class action lawsuit claiming that the school had defrauded them. The Georgia Appellate Court denied the class action, stating that each student must file a separate claim.
As of 2017, American Intercontinental University was under heightened cash monitoring by the US Department of Education "to provide additional oversight of cash management."
On March 9, 2020, the Department of Veterans Affairs suspended G.I. Bill reimbursement eligibility for American InterContinental University and several other for-profit schools due to what the V.A. said were "erroneous, deceptive, or misleading enrollment and advertising practices", giving the schools 60 days to take "corrective action". The VA withdrew its threat of sanctions in July 2020.
Funding AIU receives approximately 96% of all funds from the US government, including about $29 million from G.I. Bill funds. It has been sued for defrauding the federal government by taking federal funding while providing substandard education.
Campuses
AIU currently has two campuses in the United States, one in Atlanta and one in Houston. Following the June 2009 consolidation of the AIU Buckhead and AIU Dunwoody campuses into AIU Atlanta, the new campus underwent a significant renovation. AIU Atlanta's campus now features an industry-current forensics lab; a virtual firearms training simulator (FATS) lab; drawing studio; dedicated math, science and writing labs; and newly redesigned studios for fashion design, media production, visual communications and interior design.
The AIU Houston building was severely damaged by Hurricane Ike in September 2008. It was remodeled, and a grand re-opening celebration occurred in February 2009.
Online campus The online program began in 2001, but was recognized as a separate campus in 2002. Sunitha Araamudhu currently serves as president of AIU Online, which is now considered the main campus for AIU. The online campus offices are located in Schaumburg, Illinois, a northwest suburb of Chicago.
Trident University International has been a member of the American InterContinental University System since 2020 and offers undergraduate, graduate, and doctoral level degrees in a 100% online environment. Founded in 1998, Trident has nearly 27,000 alumni, of which more than 22,000 have a military affiliation. Sunitha Araamudhu currently serves as president of Trident at AIU.
In 2022, California Southern University was acquired by the American InterContinental University System and joined into the overall AIUS community.
Former campuses London, England (located at 110 Marylebone High St.). AIU London became part of Regent's University London in April 2013. Los Angeles, California (formerly located at 12655 W. Jefferson Blvd.) Dubai, United Arab Emirates (known as American University in Dubai since 1995)
On February 18, 2008, American InterContinental University announced plans to gradually close down its Los Angeles campus. George Miller, president of American InterContinental University, cited low student enrollment at the Los Angeles campus as the reason for this decision.American InterContinental University Announces Plan to Teach-Out Programs at Los Angeles Campus, The Earth Times, 19 Feb 2008.
Academics AIU offers associate's, bachelor's and master's degrees in a variety of fields. Many instructors are professionals in their field and draw from their real-world experience to enrich classroom instruction and career training. AIU offers classroom instruction in person at the ground campuses and online via the Virtual Campus, or a hybrid of both. The AIU Virtual Campus gives online students access to course materials as well as nearly all the amenities of a traditional campus, such as a library, career services, student clubs and financial aid information. The Virtual Campus was named "Best of the Best" by the Computerworld Honors Program in 2009.
In 2009, My Unique Student Experience (M.U.S.E.) was introduced to a number of courses to supplement learning outside the classroom. M.U.S.E. is a web-based tool that provides access to additional, interactive learning options that help students comprehend course material in a way that appeals to them. The Association of Private Sector Colleges and Universities (APSCU), formerly the Career College Association, recognized AIU's parent company, Career Education Corporation ("CEC"), for M.U.S.E. with its 2010 CCA Innovation Award.
In 2013, AIU launched a proprietary adaptive learning technology called intellipath™ to deliver data-driven personalized learning. The platform assesses students' current understanding of a topic and then tailors the type and order of the lessons presented to meet their individual needs.
In April 2014, AIU introduced intellipath into its MBA in Management, making AIU's program the first MBA in the U.S. driven by adaptive learning technology.
Accreditation The institution first received accreditation from the Southern Association of Colleges and Schools (SACS) in 1987. SACS placed the university on probation in December 2005 and renewed AIU's probation in 2006 for failure to comply with various Principles of Accreditation. On December 11, 2007, CEC announced that SACS had removed AIU's probation and that the university's accreditation was once again in good standing.
In 2009, AIU successfully sought to switch accreditation from SACS to the Higher Learning Commission (HLC) of the North Central Association of Colleges and Schools (NCA)."American InterContinental University Granted Accreditation by the Higher Learning Commission of the North Central Association". Business Wire. May 18, 2009.AMERICAN INTERCONTINENTAL UNIVERSITY; American InterContinental University Granted Accreditation by the Higher Learning Commission of the North Central Association Education Business Weekly June 3, 2009The Higher Learning Commission : American InterContinental University School officials felt this was best since the majority of its students were served through its Internet-based campus which was based in the HLC geographic region. SACS and HLC were among the six regional accrediting organizations recognized by the U.S. Department of Education.