Legal Question in Education Law in Washington

College Refund?

I went to a private college for almost three years and paid about $36,000 or so in tuition with my Student Loans. The college suddenly went bankrupt and closed. I applied to a new college to finish my degree, only to find out 3/4ths of my credits would not be accepted... upon further research I found that the majority of the credits wouldn't be accepted at any of the local schools. But I am still paying for them!

Do I have to pay for nontransferable credits after a school is closed?


Asked on 10/02/07, 11:59 pm

1 Answer from Attorneys
Theresa Petrey The Law Office of Theresa Petrey

Re: College Refund?

You should contact the Attorney General's office at a minimum. This has happened a number of times in the past 20 years in this state. In fact it happened to my mother, a re-entry student, and she wound up paying her loans, but she had graduated so had a diploma. As a practical matter, you should challenge new college's decision's on the credits. Failing that you can also take the AP test route to help soften the blow. Do as much internet research as you can, there may be others similarly situated and existing class action lawsuit may already be in progress. When an entity files bankruptcy there isn't a lot of hope to get at the assets as the secured creditors and others with "priority" come first. However, a visit to a lawyer would be well worth the time to review your actual student loan contracts to see if there are any provisions that may protect you as well as having a look at both federal and state law.

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Answered on 10/08/07, 10:31 am


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