Education Department fines Union Institute & University $4.3M, moves to cut off Title IV aid

Higher Ed Dive

Jeremy Bauer-Wolf

November 22, 2023

The U.S. Department of Education has cut off federal student financial aid to Union Institute & University and will fine it $4.3 million over multiple allegations, including that the private nonprofit college illegally took in more aid than it was entitled.

The Ohio institution repeatedly “misused Title IV funds to the detriment of its students, the department and taxpayers,” the U.S. Department of Education wrote in a letter earlier this month.

The department is fining the university for multiple violations of federal law, it wrote. The agency accused Union Institute of taking about $43,500 more in financial aid than it needed, most of which it has not paid back. It also failed to refund students more than $753,000 in aid, the Education Department said.

Cutting the institution off from federal money could spell its demise. Union Institute has maintained it will not close, despite repeatedly postponing its fall classes and facing multiple lawsuits over alleged unpaid rent and payroll.

Union Institute did not immediately respond to a request for comment Tuesday.

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