Report: #327166

Complaint Review: American Intercontinential University Online (AIU)

  • Submitted: Fri, April 18, 2008
  • Updated: Fri, June 27, 2008
  • Reported By: Lochbuie Colorado
  • American Intercontinential University Online (AIU)

American Intercontinential University Online (AIU) Fraudulent Tuition Charges Internet

*Consumer Suggestion: MGIB benefits are paid to Veteran and not school

*UPDATE EX-employee responds: Tuition Charges

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I attended AIU for my Associates' degree while I was in the military, 2004 to 2005. Upon completion of this degree I opted to continue on with my Bachelors' program. The school had submitted paperwork with the Veterans Affairs office to access funds from my MGIB funds. The VA held that paperwork because AIU was "Notorious" for fraudulent billing and had requested more information from the school. AIU is not very quick about responding to any correspondence.

Upon starting my BA I was about $2k behind in payments because of the lack of communications between the school and the VA. Upon contacting the school I was told that the government is slow getting paperwork processed and that they would just roll the $2k into my new degree program and that there would be no problems.

When classes were scheduled to being, my access to the school servers was blocked by the school. Upon contacting the school again I was informed that I now owed the $4.7k and that they would not allow me to continue to take classes. I asked where the additional $2.6k worth of charges came from and I was told Tuition charges.

I decided to let the VA paperwork finish processing. During this time I was discharged from the military and had to find a job in the commercial world. My degree from AIU was worthless. I promptly started receiving collection letters from there law firm called "Barry Serota and Associates" claiming that I would have to pay the $4.6k or face a lawsuit. After several exchanges with several rude employees I finally was able to get my point across that I thought that at least $2.6k worth of the charges were for class that I was not allowed to take. They said fine, we will have the school send you a list of charges.

About two months, many nasty letters from this "law firm" and may harassing phone calls, AIU finally sent a ledger list of charges. Each of the entries said "Tuition Charges". Once again on the phone with the nasty people at "Barry Serota and Associates" I told them I wanted a charge by charge break down associated with the courses for which I took. The rude person told me that this was the only document available and I had to pay. I demanded to speak to this person's supervisor. The supervisor was just as rude, and told me to get a lawyer because they were going to take me to court and hung up on me.

I decided to play the waiting game. Two years later still no notice of a lawsuit, but I did decide to go back to a different school to get my BA. This school asked that I get my transcripts from AIU. I filed the paperwork with my school and to no surprise my transcripts had be blocked and I received a letter, not even a week later, this time from a "General Revenue Corporation" on 04/13/08 informing me of the same $4.6k debt from AIU. I responded to this company in writing a received a phone call from the company telling me that they would ask AIU for the cost break down but since my account had been in their offices since 2007 (this was the first contact I had with this company) the letters and phone calls would not stop.

I was told that the school would send something in the next ten days. I highly doubt that AIU will send anything in the next ten days, and I highly doubt that they will produce anything other than the same ledger sheet saying "Tuition Charges".

Lochbuie, Colorado

This report was posted on Ripoff Report on 04/18/2008 06:55 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Suggestion

MGIB benefits are paid to Veteran and not school

AUTHOR: Lasseterja - (U.S.A.)

The facts presented by the complaint are not credible in my opinion. I use the MGIB and it is not done in the way this person explained in their complaint. In my experience, MGIB benefits are paid directly to the Veteran and not directly to the school. In fact most universities such as AIU sets up a payment schedule based on the VA payment being paid to the veteran. The Veteran is responsible for submitting the correct VA form to VA for enrollment (VA Form 22-1990) or (VA Form 22-1995) if changing schools and then setting up verification of enrollment through the School's VA rep. Then the process is that the student pays the tuition up front to the school. Then the student verifies enrollment each month via the Wave Website. Once verification is done, the veteran either recieves a check or direct deposit depending on how the account was set up. The maximum amount for Chapter 30 is $1101.00 for a full time student.

If this person owes money associated with the MGIB, Then one of two things happened: He didn't file/verify a VA claim or he spent the MGIB payments when he received them on things other than tution. If he filed the correct VA forms, he would recieve his payments when he verified his monthly enrollment. Again payments go to the veteran and not the school.

Something in the story doesn't smell right and I betting this compalint is short on facts.
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#2 UPDATE EX-employee responds

Tuition Charges

AUTHOR: Ben - (U.S.A.)


Didn't you ever receive the GiBill? If so, you should have used these proceeds to pay your tuition. If you were enrolled full time for four months, you should have recieved $1034 per month, which should have covered these charges had you turned them over to AIU. Keep in mind that the GiBill timing has no relation to your tuition due and that the GiBill goes to you, not the school. You are responsibile for using those proceeds to pay the school.

I suspect that if you could get someone from AIU on the phone, they should be able to explain the charges to you in detail.
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