American Intercontinental University - Online Degrees - College Online Degrees

American InterContinental University, commonly called AIU, is an international for-profit university owned by Career Education Corporation (stock symbol CECO). It was founded in 1977 as the American College of Applied Arts.
AIU is accredited by the Southern Association of Colleges and Schools (SACS) to award Associate's, Bachelor's, and Master's degrees. SACS placed the school on probation in December 2005 and extended the probation for a second year in December 2006.[1] In October 2007, a panel recommended lifting the probation. An October 19, 2007, article in the Chicago Tribune newspaper reported that ". . . an accrediting association panel said no corrective action should be taken on student records and recruiting concerns at the company's
American InterContinental University campuses." On December 11, 2007, SACS announced that they have lifted AIU's probation and its accreditation is in good standing.

The American College of Applied Arts, founded in 1977, offered courses in fashion and interior design in Atlanta, Los Angeles, London, and Dubai. The institution first received SACS accreditation in 1987. Steve Bostic bought the school in 1996 and changed its name to American InterContinental University, added new programs, and increased class sizes and tuition.

AIU's parent company has grown rapidly and had become increasingly controversial. CEC 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 school 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.

SACS placed the university on probation in December 2005.The Commission stated that AIU "failed to demonstrate compliance with" the following sections of the Principles of Accreditation

The University had come under scrutiny for its student recruiting practices and the fact that it falsely listed students as enrolled when they never actually attended. The University is an open-enrollment institution, where nearly everyone who applies is admitted. AIU argues that these open standards help create educational opportunities for low-income and minority students who might not otherwise be able to attend college. Others, including current and former AIU employees, have countered that enrolling students who lack adequate preparation and qualification does not actually help them. One anonymous professor stated: "If you can breathe and walk, you can get into the school."