Lincoln Group of Schools

Lincoln Tech
Type for-profit
Established 1946
President Scott M. Shaw
Executive Chairman David F. Carney
Location West Orange, New Jersey, United States
Campus Multiple campuses located in Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Tennessee and Texas.
Website www.lincolnedu.com

Lincoln Tech is a group of for-profit tertiary level vocational institutions based out of West Orange, New Jersey.[1] After its most recent downsizing, the company consists of 14 campuses in 11 states in the United States. [2]Each campus is owned and operated by Lincoln Educational Services Corporation (NASDAQ: LINC), a provider of career-oriented post-secondary education.

History

The founder and first President of Lincoln was J. Warren Davies. The first Lincoln Technical Institute was established in 1946 in Newark, New Jersey, to serve World War II veterans returning from overseas. At Lincoln, these veterans found training programs to help them learn career-specific skills, and transition into civilian careers in installation and servicing of air conditioning and refrigeration equipment. Automotive courses were added in 1948. Lincoln established traveling schools to offer NAPA-certified training, which certified over 11,000 mechanics between 1955 and 1965.

In 1969, Ryder acquired Lincoln Technical Institute and two other technical schools with campuses in Illinois, Pennsylvania and New Jersey. By 1977, Lincoln Technical Institute had ten campuses in Illinois, Indiana, Iowa, Maryland, New Jersey, Pennsylvania, Texas, and Washington, DC. Lincoln Technical Institute acquired court reporting school The Cittone Institute and its three campuses in 1994, leading the group to have 14 campuses by the school's 50th anniversary in 1996.

Stonington Partners and Hart Capital purchased Lincoln Technical Institute in 2000. The school continued expanding, acquiring Denver Automotive and Diesel College and Computer-Ed Business Institutes in 2001, Lincoln College of Technology in Nashville (previously the Nashville Auto-Diesel College) in 2003, and the Southwestern College of Business and New England Technical Institute[3] in 2004.

Also in 2005, the group acquired the Euphoria Institute of Beauty Arts and Sciences. Further acquisitions include the Harrison Career Institute in 2007, Briarwood College in December 2008 and the Baran Institute of Technology schools (Baran Institute of Technology, Connecticut Culinary Institute, Americare School of Nursing, Engine City Technical Institute, and Clemens College) in 2009. Lincoln completed the purchase of Florida Medical Training Institute in 2012.

From 2013 to 2014, Lincoln planned to cease operations at four schools in Ohio, one school in Kentucky and five training sites in Florida. [4]

In 2014, The New York Times reported that 50% of all Lincoln schools failed proposed gainful employment regulations[5]

Public offering

Lincoln Educational Services Corporation made its initial public stock offering in 2005, trading on the NASDAQ under the symbol LINC. California Regent Richard C. Blum (Dianne Feinstein's husband) was a key investor, with $24,000,000 in stock.[6]

Recruiting

Lincoln Education employs approximately 240 recruiters who meet students at high schools, in customers' home or during a campus visit. [7] The school also has a call center for recruiting.

Lawsuits, investigations, and campus closings

Lincoln Educational Services faced an investor lawsuit on behalf of those who purchased company stock between March 3, 2010, and August 5, 2010. The plaintiffs alleged that Lincoln Educational Services issued a series of materially false and misleading statements related to its business and operations in violation of the Securities Exchange Act of 1934. The case was dismissed by the United States District Court for the District of New Jersey in September 2011.[8] In October 2014, Massachusetts state attorney general Martha Coakley announced an investigation into Lincoln's for-profit schools in the state of Massachusetts.[9]

In 2013, USA Today, based on data from 2009–10, called one of the company's 31 campuses a "Red Flag school", one which has "a higher loan default rate than graduation rate."[10]

The company announced the closing of five campuses in 2013 after new federal regulations prevented students without high school diplomas from receiving federal tuition assistance. The closures included campuses in Dayton, Ohio; Toledo, Ohio; Cleveland, Ohio; Florence, Kentucky; and two in Cincinnati, Ohio.[11] A sixth campus closed in Hamden, Connecticut, in April 2014,[12] and a seventh at the Melbourne, Florida, campus of Florida Medical Training Institute closed in December 2014.[13]

In 2015, the Commonwealth of Massachusetts filed a complaint against the corporation alleging violations of the Massachusetts Consumer Protection Act from 2010 to 2013. Lincoln Education paid $850,000 to the Attorney General and agreed to forgive $165,000 of student debt. [14] The State of Maryland's Attorney General also issued an administrative subpoena requesting detailed information about its Columbia, Maryland campus.[15]

In 2015, Lincoln Education phased out of all of its 18 healthcare campuses. [16]

Campuses

Lincoln Educational Services operates through the following brands: Lincoln Technical Institute, Lincoln College of Technology, Euphoria Institute of Beauty Arts and Sciences, Lincoln Culinary Institute, and Lincoln College of New England.[17] In 2015,18 healthcare campuses were closed.

  • Hartford, Connecticut (closed 2016)
  • Shelton, Connecticut
  • West Palm Beach, Florida
  • Columbia, Maryland

References

  1. ↑ "Lincoln Technical Institute Inc Corporate Office & Headquarters".
  2. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  3. ↑ Lubanko, Matthew (November 5, 2004). "Deal signed to buy New England Technical Institute". Hartford Courant. Retrieved January 6, 2015.
  4. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  5. ↑ http://www.nytimes.com/interactive/2014/07/03/upshot/100000002977650.mobile.html?_r=1
  6. ↑ Berkeley Daily Planet, Berkeley California. "Billion Dollar Baby:
    The University of California invests $53 million in two diploma mills owned by a regent.. Category: Page One from The Berkeley Daily Planet"    . berkeleydailyplanet.com.
  7. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  8. ↑ "In re Lincoln Educational Services Corp. Securities Litigation. Civil Action No. 10-460 (SRC)". United States District Court for the District of New Jersey. September 6, 2011. Retrieved January 6, 2015.
  9. ↑ Woolhouse, Megan (October 20, 2014). "For-profit colleges get harsh grades by former students". Boston Globe. Retrieved January 6, 2015.
  10. ↑ Marklein, Mary Beth; Upton, Jodi; Kambhampati, Sandhya (July 2, 2013). "College default rates higher than grad rates". USA Today. Retrieved January 6, 2015.
  11. ↑ Brownfield, Andy (August 21, 2013). "Lincoln College of Technology closing Ohio campuses". Cincinnati Business Courier. Retrieved January 6, 2015.
  12. ↑ Turmelle, Luther (April 16, 2014). "Hamden tech school closing, students told they'll have to travel to Shelton or New Britain". New Haven Register. Retrieved January 6, 2015.
  13. ↑ "Melbourne medical training school shuts down". Florida Today. December 17, 2014. Retrieved January 6, 2015.
  14. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  15. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  16. ↑ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11250915-12833-196294&type=sect&TabIndex=2&dcn=0001140361-16-057345&nav=1&src=Yahoo
  17. ↑ "Lincoln Educational Services Corporation".
  18. ↑ "Lincoln Tech-Chicago campus in Melrose Park". Lincoln College of Technology. Retrieved 29 December 2015.

External links

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