As of the end of the month, the Charlotte School of Law will be ineligible to receive funds from federally guaranteed student loans:
Last year those funds brought almost $50 million into Harlotte's coffers. Without that money, which represents the bulk of its revenue, Harlotte cannot continue to operate. It may well never open its doors again.
Unsurprisingly, the news of this minor victory for the anti-scam movement has ruffled feathers over at Harlotte. Students are circulating petitions and seeking legal advice in contemplation of litigation. Professors are calling upon InfiLaw, the parent scam-company, to keep the school alive, presumably by injecting tens of millions of dollars per year:
Particularly aggrieved are those students who expected to graduate after one more semester. I agree that they should be given that chance to finish their degrees. Late December is a terrible time to find out that the skule may not open again after the break.
But should they want to finish? If the skule closes down on them, they can wash their hands of their student loans. That's a hell of an opportunity, one that many similarly placed students and recent graduates would grab in a trice. I suspect, however, that at least 90% of the 3Ls at Harlotte won't share that view: they'll still want the degree, despite their very poor prospects and the huge amount of non-dischargeable debt that most of them will have run up.
Might two camps emerge at Harlotte? The professors and most of the students will probably demand that Harlotte stay open for one more semester at least. But students who find out about the rare opportunity to dump their student loans may lobby for Harlotte never to open again. And the administrators may even advertise that opportunity in order to drum up support for a prompt closure.
The option of transferring raises an additional complication. Traditionally one could transfer no later than the end of the first year. Lately, however, some law schools have taken transfer students with two years of credit. Might some enterprising scamsters, especially those in or near North Carolina, go after some Harlotte students needing to transfer for only one more semester? Students availing themselves of that option would not be allowed to discharge their student loans, so transferring would probably still be a bad idea.
And what is InfiLaw going to do? Presumably it will offer to absorb Harlotte's students at one of the other two InfiLaw toilets. But would anyone, even a Harlotte student, be stupid enough to take that offer after being stung by InfiLaw?