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
For-Profit Colleges
The author opines that If Chapter 11 were available to post-secondary schools, rehabilitation for those schools whose problems are balance-sheet issues but not academic or management, would be possible. The result, among others, would be to preserve the institution, the value of credits earned by students and the value of degrees confirmed to alumni.
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