VIA EMAIL (corvind@ieccolleges.com) Mr. Don Corvin Vice President of Compliance IEC International Corporation United Education Institute 6055 Pacific Boulevard, CA 90255 Re: Reaccreditation Deferred; Interim Report Reviewed; Institutional Show Cause Continued; Program Approvals Withdrawn 30 programs; Limited Enrollments 38 programs Interim Report Required ACCET ID #0289 Dear Mr. Corvin: At its April 2012 meeting, the Accrediting Commission of the Accrediting Council for Continuing Education & Training (ACCET) reviewed the interim report submitted by United Education Institute, with its main campus in, California, and branch campuses in Anaheim,,,, Van Nuys,, and, California, in response to the December 22, 2011, Commission Action letter resulting from an Institutional Show Cause Directive initialized at the April 2011 Commission Meeting and continued at the August and December 2011 Commission Meetings. That letter deferred final consideration of the reaccreditation on-site visit team reports (visits conducted January 4-7, 18-21 and February 17-18, 22-25, 2011), and the institution s responses to those reports, dated over the period February 24 through March 24, 2011, continued the Institutional Show Cause, and directed the institution to provide: 1) acknowledgement of implementation of the Program Approval Withdrawals relative to the prohibition of new enrollments for 55 programs and limited enrollments for the remaining nine programs, at specified locations, including specific acknowledgement of the previously directed cessation of enrollments for the Criminal Justice program at the Van Nuys campus and the Medical Assisting program at Van Nuys and ; 2) a narrative update on the progress in implementing the revised corporate placement verification process and the resultant efforts to improve placement rates, in addition to detailed supporting documentation to evidence that the market area can sustain the level of graduates the institution is producing, both being necessary to regain eventual approval to enroll; 3) updated completion and placement data for all programs at all campuses for calendar year 2010 and the period January 1 October 31, 2011, performed by UEI s Corporate Verification Department employing the same auditing methodology as used by Weworski & Associates for the placement audit previously directed by the Commission, which must include the preparation and submission of (a) updated Documents 28.1 for all programs to include all students scheduled to graduate, (b) full supporting documentation substantiating each reported start, completion, waiver, and placement in

Page 2 of 6 accordance with verification requirements disclosed in ACCET Document 28 for the various categories of training-related employment, and (c) a corresponding list for each Document 28.1 submitted by the institution identifying, by monthly cohort, the name of each student included on the form, along with the student s cumulative grade point average, and overall attendance rate utilizing the attached On-site Sampling Verification: Completion, Placement, and Academic Data form as a guide for each scheduled to graduate (Column 3) cohort on the respective 28.1; and 4) a teach-out plan in accordance with ACCET Document 32 for each program at each campus, as approval for the majority of programs across all campuses had been withdrawn. Upon review of the interim report, received March 26, 2012 (with additional updates emailed on March 29, 2012), the Commission determined that, while items one and four noted above were satisfactorily addressed, and while a degree of progress was evident in at least small improvements to most programs across all eight campuses, the placement statistics for the majority of programs are still well below the ACCET benchmark. Following extended debate on the pros and cons of continuing accreditation, the Commission found sufficient good cause to defer consideration and extend the institution s accredited status beyond the 12-month maximum deferral period, pending further review at its August 2012 meeting in conjunction with its vote to continue the Institutional Show Cause status due to seriously below-benchmark placement rates. While the institution provided a detailed response illustrating the implementation of its placement tracking practices and enhanced career services efforts, the effectiveness of these newly developed processes has yet to be demonstrated, and can only be evidenced in practice over time. The institution s current placement results indicate a clear and serious failure to fulfill its vocational training mission consistent with its obligations to its students and the requirements for maintaining compliance with ACCET Standards for Accreditation. The Commission noted the serious risk faced by students represented by the institution s severely substandard completion and placement statistics for calendar year 2010, statistics that will not likely improve at this late date. Further, while the updated statistics for January October, 2011 show some improvement, the majority of programs are still far below benchmark, with a significant number in the Show Cause range. Therefore, the Commission voted to continue the withdrawal of program approval for the purpose of prohibiting new enrollments for all programs in the Show Cause range (29 of the institution s 68 programs across eight campuses), as outlined in the chart below. It is further noted that the Commission was particularly concerned about the severely low placement rates (and excessively high enrollment rates) for the Medical Assisting program across the eight campuses, with an average placement rate of only 30% (3,150 total eligible/954 placed), and that vote to continue withdrawal of approval for this program at all locations offers serious doubts of any possible future reinstatement. No new enrollments Anaheim Medical Assistant 80.93% (493 net starts/399 completions) 39.71% (340 eligible/135 placed) Van Nuys Medical Assistant 79.74% (469 net starts/374 completions) 38.36% (318 eligible/122 placed)

Page 3 of 6 Computer Systems Tech. 75.45% (110 net starts/83 completions) 50.70% (71 eligible/36 placed) Dental Assistant 79.19% (197 net starts/156 completions) 54.14% (133 eligible/72 placed) Massage Therapy 71.6% (81 net starts/58 completions) 36.54% (52 eligible/19 placed) Medical Assistant 74.14% (464 net starts/344 completions) 25.74% (303 eligible/74 placed) Med. Billing & Ins. Coding 83.33% (144 net starts/120 completions) 45.10% (102 eligible/46 placed) Pharmacy Technician 82.18% (221 net starts/183 completions) 35.9% (156 eligible/56 placed) Dental Assistant 81.08% (111 net starts/90 completions) 46.75%( 77 eligible/36 placed) Medical Assistant 74.15% (557 net starts/410 completions) 25.56% (360 eligible/92 placed) Med. Billing & Ins. Coding 80% (145 net starts/116 completions) 32.99% (97 eligible/32 placed) Pharmacy Technician 87.82% (156 net starts/137 completions) 16.95% (118 eligible/20 placed) Business Mgmt. Degree 50% (2 net starts/1 completions) 0% (1 eligible/0 placed) Criminal Justice 76.62% (77 net starts/59 completions) 43.14% (51 eligible/22 placed) Dental Assistant 75% (184 net starts/138 completions) 47.46% (118 eligible/56 placed) Massage Therapy 73.68% (57 net starts/42 completions) 44.12% (34 eligible/15 placed) Medical Assistant 78.96% (556 net starts/439 completions) 23.56% (399 net starts/94 placed) Med. Billing & Ins. Coding 72% (200 net starts/144 completions) 28.36% (134 net starts/38 placed) Pharmacy Technician 86.43% (140 net starts/121 completions) 28.07% (114 eligible/32 placed) Massage Therapy 80.33% (61 net starts/49 completions) 27.5% (40 eligible/11 placed) Medical Assistant 75.51% (1021 net starts/771 completions) 32.94% (674 eligible/222 placed) Med. Billing & Ins. Coding 73.01% (326 net starts/238 completions) 33.82% (204 eligible/69 placed) Pharmacy Technician 70.72% (161 net starts/128 completions) 36.11% (108 eligible/39 placed)

Page 4 of 6 Medical Assistant 75.98% (458 net starts/348 placed) 34.8% (296 eligible/103 placed) Med. Billing & Ins. Coding 82.56% (172 net starts/142 completions) 50.41% (121 eligible/61 placed) Pharmacy Technician 85.71% (105 net starts/90 completions) 41.56% (77 eligible/32 placed) Dental Assistant 84.18% (196 net starts/165 completions) 48.23% (141 eligible/68 placed) Medical Assistant 80.22% (642 net starts/515 completions) 24.3% (461 eligible/112 placed) Vocational Nursing (2010) 81.13% (53 net starts/43 completions) 24.32% (37 eligible/9 placed) Accordingly, the institution is prohibited from enrolling new students in all programs noted above, except those students with a signed enrollment agreement executed prior to the December 22, 2011, Commission action letter. Additionally, the Commission voted to limit the number of enrollments allowed in the remaining 39 programs which are currently performing in the Reporting Range or better, based on reported placement rates not to exceed the following limits per campus, from the present until the Commission can again consider the institution s progress towards compliance at its August meeting. During this period, new students may enroll in any program not listed above until the cumulative cap on the individual campus is reached: Anaheim 200 total new enrollments Van Nuys 300 total new enrollments 50 total new enrollments 100 total new enrollments 75 total new enrollments 300 total new enrollments 150 total new enrollments 250 total new enrollments Consequentially, the Commission directed that an additional interim report is required, which must include the following specific items: 1. A comprehensive narrative update on the continuing implementation of the institution s initiatives for enhancing career services assistance for all graduates and ensuring vigilant corporate oversight of resultant completion and placement documentation and statistics. 2. Updated completion and placement data for all programs at all campuses for calendar year 2011 and for the period January 1 March 31, 2012, performed by UEI s Corporate Verification Department employing the same auditing methodology as used by Weworski & Associates for the placement audit previously conducted. The scope of this placement audit must include the preparation and submission of 1) updated Documents 28.1 Completion and for all programs to include all students scheduled to graduate; 2) full supporting documentation substantiating each reported start, completion, waiver, and placement in accordance with verification requirements disclosed in ACCET Document 28 Completion and Placement Policy

Page 5 of 6 for the various categories of training-related employment, and 3) a corresponding list for each Document 28.1 submitted by the institution identifying by monthly cohort, the name of each student included on the form, along with the student s cumulative grade point average, and overall attendance rate utilizing the attached On-site Sampling Verification: Completion, Placements, and Academic Data form as a guide for each scheduled-to-graduate (Column #3) cohort on the respective 28.1s to be submitted with your response. Further, the institution must provide a complete list of all students, by program and campus, enrolled after the date of this letter in those programs for which approval has not been removed to include a narrative update on their progress toward completion of their respective program. 3. A table or spreadsheet tallying the total number of new enrollments executed in each program at each campus since receipt of this letter. A copy of this report, including the attached interim report cover sheet, must be emailed to interimreports@accet.org no later than June 29, 2012. As a reminder, please be advised that late submission and receipt of documents and reports are subject to significant late fees in accordance with Commission policy. These fees are outlined in ACCET Document 10, which can be found at www.accet.org. Neither deferral of reaccreditation nor withdrawal of program approval are adverse actions and they are explained in ACCET Document 11 Policies and Practices of the Accrediting Commission, which is available on our website at www.accet.org. In accordance with Commission policy, no substantive changes including, but not limited to, new programs or major program revisions, new branch campuses or other new sites, and/or relocation out of the general market area, will be permitted during the term of the deferral period. Your demonstrated capabilities and commitment in support of the institution's accredited status are essential to a favorable outcome in this process. Should you have any questions or need further assistance regarding this letter, please contact the ACCET office at your earliest opportunity. Sincerely, Roger J. Williams Executive Director RJW/mln Attachments: Interim Report Cover Sheet On-Site Sampling Verification: Completion, Placement, and Academic Data form Cc: Ms. Kay Gilcher, Director, Accreditation Division, USDE (aslrecordsmanager@ed.gov) Ms. Martina Fernandez-Rosario, ACD-San Francisco, USDE (martina.fernandez-rosario@ed.gov) Ms. Patricia Dickerson, TD San Francisco/Seattle, USDE (patricia.dickerson@ed.gov) Ms. Joanne Wenzel, Deputy Bureau Chief, CA BPPE (joanne-wenzel@dca.ca.gov)