Today the US Department of Education announced that Florida Coastal is ineligible for student loans. Specifically, Florida Coastal had failed to meet the standards of financial responsibility, fiduciary conduct, and sound administration. It earned "the lowest possible score", namely –1.0, for financial responsibility. InfiLaw recently dumped its 98.6% stake (InfiLaw no longer even operates a Web site), thereby leaving big concerns about solvency. Insufficient "competency and integrity" also contributed to the decision.
Florida Coastal is looking into the option of appealing against the decision within the next ten days. Already, however, the Department of Education is planning actions to take "if Florida Coastal School of Law closes precipitously"—a likely eventuality indeed. With no significant source of money for operations, the worst possible financial rating, a reported lack of integrity, and an evident propensity for "profiteering off students", Florida Coastal may well go tits up any minute now. Charlotte notoriously locked its doors without a word, and Arizona Summit canceled classes and shut up shop about two weeks before the start of the academic year, so I shouldn't put it past an über-toilet of InfiLawvian heritage to leave its toileteers high and dry.
Florida Coastal seems ready to become the fourteenth law school to close its doors within the past five years. Which will be #15? Nominate your (least) favorite below.
