Bay Area for-profit colleges shut down

[alp227]

Source: SF Chronicle

A San Jose for-profit college company closed its doors Monday, including its schools in San Francisco, Hayward and Los Angeles, according to the state Bureau for Private Postsecondary Education.

BioHealth College in San Jose, which also operates Bryman College locations in the three other California cities, shut down 10 days after filing for bankruptcy. The company operated five schools serving 278 students combined, said Russ Heimerich, a spokesman for the Bureau for Private Postsecondary Education.

"The students should come out financially whole," Heimerich said, "but they will not be able to get their investment in time back."

Credits from the programs, such as courses for becoming a dental assistant, massage therapist or pharmacy technician, are unlikely to transfer to another institution, Heimerich said.

Read more: http://www.sfgate.com/bayarea/article/Bay-Area-for-profit-colleges-shut-down-5652933.php

[gtar100]

1. In case you're worried, I'm sure the owners of this college are fine

and won't have to pay off a student loan or any nonsense like that. The bankruptcy will protect them.

[aint_no_life_nowhere]

2. I don't know how student tuition is handled in a school's Chapter 7

but I suspect the students are not secured creditors. The students would recoup if there's anything left of the assets after secured creditors and landlord liens are paid out. If the schools had five locations, they are probably lessees and will owe back rent under the leases. I doubt the students will be made whole. Hopefully they didn't have to pay a lot of tuition in advance. If they took out student loans, I suspect they will be on the hook to pay them back, whether they completed their program or not.

[groundloop]

3. On the bright side (if you can call it that) they won't be around to screw future students

Of course all current students are getting screwed since it's not an accredited school and the course credits won't transfer anywhere else, not to mention being on the hook for student loans and losing any tuition that was already paid.

[Hoppy]

6. Don't be too sure. Nothing will stop these same thieves from opening

Bio-Tech Health University next September.

[paleotn]

4. It seems...

...starting a for profit college is fast overtaking "start a religion" as a foolproof way to get rich quick.

[raccoon]

5. A harbinger of things to come? Rec'd. nt

[gerogie2]

7. The government should allow no grants or loans for private colleges

For profit schools should not be eligible for any federal or State government loans or grants. If a student wants to attend one they should pay out of their own pocket and/or obtain a private loan. Most of these schools are diploma mills.

[Trillo]

8. "but they will not be able to get their investment in time back."

Time is money? Well, I guess so long as you're part of the 1%, everyone else can just fuck off.

[SkatmanRoth]

9. Has Bain Capital move in to liquidate the assets yet?

Mitt might be able to extract a few dollars here.

[Brother Buzz]

10. The company operated five schools serving 278 students combined

I suspect Bain Capital has no interest in strip mall leases.