What's going to happen to the pending lawsuit against Heald?
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There is more than one lawsuit pending against Heald. However, the same thing would happen in any case. If CCi goes bankrupt, the terms of the bankruptcy would determine what gets paid to creditors. Salaries must be paid first, by law. In most cases, nothing would be left for a suit, and once the entities being sued (the California AG suit, for example names not only CCi, but each of the brands, as well) would no longer exist, the lawsuit would go away. The same, unfortunately would be the case for the class action suits students and instructors have filed.
In theory, if the quarterback calls for an audible "hail Mary" play, it would be exactly what you said. An excellent alternate play TD. Heald staff hoping for sales and graduate students hoping for DoE/AG for loan forgiveness, since there won't be any left over funds for the California lawsuit.
If CCI goes south being filing for BK then the lawsuit becomes part of the "bankruptcy estate". Most likely after all the "priority claims" being mostly wages, taxes and attorney/court fees get paid there won't be any left over funds for the California lawsuit. The lawsuit gets discharged in Bankruptcy as CCI has no assets. Heald will presumably be worthless as it loses Title IV funding the moment CCI files BK. In theory but won't happen in practice, Heald simply gets sold off as an asset. Unfortunately, Heald isn't an asset at least at the present time.
Which campus are you referring to? I think it's up to all the AG and DoE to make the call. They are the one in the play booth calling the play now. CCI is the quarterback and its cronies, such as Heald, Everest, and Wyotech, are the offensive linemen. Hopefully, the guys in the booth call for "loan forgiveness or I-4 play." It's a sure TD to STFU all the opposition's complaint. The students that abused the system, however, would be the losing team.
I am not sure of where the basis for all of the lawsuits is. At my campus, there is good class curriculum. (I think we develop and share with other campuses also). Faculty and staff seem good also. If a student was getting some fake curriculum or something not accredited, I could see the lawsuit. These students seem to have spent the financial aid money on personal expenses beyond education. Isn't this their fault? I am not trying to blame them, but if they get their loans forgiven, why would any student pay back a loan? I just saw an article on law school grads that said many were only making 50-60K. Now bad, but with the high debt from the law school, they could say that they were cheated. What is Ted Cruz saying on this corinthians 15?
662 DoE has the only jurisdiction to dismiss Federal Loan for students, if CCI goes south. If approved, it will cost $1.5 billion. Ouch! I think DoE should exclude the idiots only from dismissing their Federal and Private loans. This will cut the cost down. (jk)
Heald degrees aren't completely worthless. You can use it at the bottom of the bird cage, if you have one. This is really insulting for the smart ones that graduated from Heald.
630 here. Federal loans will be subject to the regs regarding closed schools. Private loans will be sold at a steep discount and aggressively collected. Genesis loans were, I believe, all forgiven. The degrees will, if possible, be worth even less than now.
Heald is much more solid than other CCI schools. Heald will be fine.
630 What about the acquired degrees from CCI schools and school loan debts from students? What's going to happen?
If the company shuts down there will be no entity to sue. Won't shield ELT from any criminal prosecution that might arise......