Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesKickerLJN NewslettersNewsSections

For-Profit Colleges

By Victor A. Vilaplana
November 02, 2015

In 1992, Congress enacted a number of provisions as part of the Higher Education Act reauthorization in reaction to hearings held by the Senate Permanent Subcommittee on Investigations regarding abuses in the federal student aid program. One of the provisions is 20 USC 1002(a)(4)(A), which automatically makes any post-secondary school that files for bankruptcy ineligible to receive federal student financial aid (often referred to as Title IV funds) for its students. This automatic ineligibility is also set out in 34 CFR 600.7

The effect of the statute and the regulation is to deny to any post-secondary school suffering financial distress the rehabilitative opportunity available under Chapter 11 of the Bankruptcy Code. Instead, such school is left to liquidate its assets and, deprived of access to the government student loan program, frequently to abruptly and chaotically cease operations as in the recent case of Corinthian College, Inc. Why?

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

CLE Shouldn't Be the Only Mandatory Training for Attorneys Image

Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.