The latest plan is that a group of local lawyers are petitioning the state's supreme court to put the school into a bankruptcy-dodging receivership to formulate a debt settlement plan. They would file this on behalf of the students still enrolled, and their standing argument I find intriguing:
The students have standing because they are “creditors” who have invested thousands in tuitions, much of it in student loans paid up front to the school.Wait...what? Current students are creditors? Can anyone explain this adequately?
We just spent a multi-year period in the courts and concluded that law students are atypical consumers (atypical because they're assumed to be sophisticated beyond what they objectively can be and told that it's impossible for them to rely on things the seller regularly intends its customers to rely upon). You don't have a right to a financial benefit of any kind at any point, and surely the school doesn't have a legally cognizable contract obligation to give you a degree if it closes in the meantime. And surely they aren't admitting that the students have a common unliquidated claim against the school, right? One has to wonder exactly how these students are "creditors" in the same universe where it's apparently impossible to prove a graduate school committed run-of-the-mill fraud. Does the South Carolina Supreme Court want to set that precedent?
In any event, now we're faced with a situation where law school proponents are advocating for expanded student legal rights in order to defeat more vile law school proponents. Of course, all this effort, all this nostalgia and savior complexing, is about a decade-old 4th-tier for-profit crap hole.
In addition to the receivership to basically settle debts to InfiLaw (which I'm sure InfiLaw won't fight at all), the plan calls for million-dollar gifts from each of the five founders to set up a non-profit foundation.
If you think such an idea is rooted in the same type of fantasy that clings to the idea of a fourth-tier law school being an essential community institution, you're about to get a cherry on top of the ridiculousness sundae:
And the success of the endeavor would be national news, thus generating more financial support funneled through the non-profit foundation.Exactly what would be "national news" here? "Greedy Old Dudes Give Up Pirate Treasure"?! "Lawyers Use Trickery to Continue Pumping Out Lawyers"?! "Fourth-Tier School Robs 2Ls of School Closure Discharge"?!
If current 1Ls and 2Ls - particularly those in the bottom half of the class - have any notable legal interest in CSOL's fate, it's actually that CSOL goes under before they graduate, which gives them the special mulligan right of a closed school discharge. That a group is filing on behalf of the current students to keep the place open is almost as sad as banking on a plan involving largess from the people who drove the place into the ground.
The worst possible outcome for the current students is that they find a way to keep the school open for two years so these classes can graduate and then it closes. I would bet that's precisely what happens, and I would bet all too many of the students don't understand what a terrible deal that is for most of them.
But the students likely know better. They're creditors in an educational-financial transaction so mysterious, it's almost like someone is just making it up.