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Loan Discharge for Students of Failed Law School

https://goo.gl/Sjmk56 Loan Discharge for Students of Fail kaneloa03/12/18
Good news, but for many of them, it may be to no avail. You onehell03/12/18
Meh there are 40-50 failed law schools that are still in ope cocolawyer03/12/18
Scamstafff is still getting paid. triplesix03/12/18
Christ La Verne lost ABA approval for a time...I didn't thin cocolawyer03/12/18
Right. I think CSOL was basically a sacrificial lamb. They w onehell03/12/18
There are much worst offenders. Thomas Jefferson had a 30% b cocolawyer03/12/18
I hope to one day see scam deans dragged out of their houses wolfman03/12/18
Yes but TJ was founded in the 60s and is nominally nonprofit onehell03/13/18
kaneloa (Mar 12, 2018 - 11:48 am)

https://goo.gl/Sjmk56

Loan Discharge for Students of Failed Law School
By Andrew Kreighbaum
March 12, 2018
0 COMMENTS

The Department of Education last week announced it was extending the window for students who withdrew from a failed for-profit law school before its closure to request discharge of their federal student loan debt.

The decision means that about 300 students who attended Charlotte School of Law could be eligible to have their student loan debt cleared.

Federal regulations state that students who withdrew from a college or university not more than 120 days before its closure can apply to have their loans automatically cleared, a process known as closed-school discharge. But the secretary of education has the authority to declare exceptional circumstances to extend that window so students who withdrew earlier can be eligible for loan forgiveness.

The department in August designated April 12, 2017, as the earliest date students could have withdrawn from the law program and still receive automatic loan forgiveness. Now, Charlotte students who withdrew on or after Dec. 31, 2016, can be eligible for closed-school discharge. That date fell shortly after an announcement from the Obama administration that it would cut off the law school’s access to Title IV federal aid, a major blow to its viability as an institution.

North Carolina attorney general Josh Stein, since well before Charlotte’s closure last year, was asking Secretary Betsy DeVos to extend the closed-school discharge window and praised the decision in a statement Friday.

As of November, when the more narrow eligibility guidelines were in place, just 79 Charlotte students had applied for loan forgiveness. Kyle McEntee, the executive director and co-founder of Law School Transparency, said expanding eligibility for loan discharge was unexpected but the right decision by the department.

“This signals to other for-profit institutions that the ED will not necessarily let them wiggle out of accountability by stringing students along,” he said.

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onehell (Mar 12, 2018 - 1:34 pm)

Good news, but for many of them, it may be to no avail. You can't get a discharge if you "completed or are in the process of completing a comparable program of study" at another school.

And since the DOE could go after the school if it discharges the debts, thus reducing what the school's owners can get out of the wind-down, that makes it a priority for a closing school to do everything it can to find some other Very Bad Law School to accept the students and credits, and to get the students to take that offer.

This is the best thing that ever happened to these kids. They can get a mulligan, but only if they don't transfer. Sadly, a lot of them will or have, would be my prediction, as the school will do everything it can to convince them to do so. A lot of these kids are very naïve to have gone to a place like this in the first place. They don't want their money back, they want a JD. They are blissfully unaware of how bad a trade that would be, and they will also have parents and family pressuring them and just in general a strong cultural bias that exists in America against "quitting" or "giving up."

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cocolawyer (Mar 12, 2018 - 3:29 pm)

Meh there are 40-50 failed law schools that are still in operation. Like seriously how can Cooley, Thomas Jefferson, University of La Verne (And Shirley giggle), Golden Gate etc., be considered anything other than an abysmal failure.

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triplesix (Mar 12, 2018 - 3:57 pm)

Scamstafff is still getting paid.

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cocolawyer (Mar 12, 2018 - 4:54 pm)

Christ La Verne lost ABA approval for a time...I didn't think that was possible.

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onehell (Mar 12, 2018 - 6:53 pm)

Right. I think CSOL was basically a sacrificial lamb. They were too small and newly-established to have the kind of clout with a certain accreditation authority that the bigger and more established unranked schools do, and their for-profit status made them an easy target for regulators.

So, CSOL's head was delivered on a pike to the DOE, in hopes that this offering would appease the gods.

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cocolawyer (Mar 12, 2018 - 7:43 pm)

There are much worst offenders. Thomas Jefferson had a 30% bar passage rate for June...30%...da fuk

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wolfman (Mar 12, 2018 - 8:31 pm)

I hope to one day see scam deans dragged out of their houses screaming and bloody by police officers and loaded into paddy wagons for a one-way trip to federal lock-up.

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onehell (Mar 13, 2018 - 12:14 pm)

Yes but TJ was founded in the 60s and is nominally nonprofit, whereas CSOL was founded in 2011, by venture capitalists with no connection to the establishment.

This is what guilds do: Protect members against the outside world by erecting barriers to entry, and protect members from one another in rank order. The DOE was on a crusade against for-profit schools in the waning days of the Obama administration, so they sacrificed a lamb. Doesn't mean there aren't others who are just as bad or worse, just that's who they decided to offer up.

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