ONLINE SCHOOLS

Not long ago, two private vocational/technical schools closed abruptly, taking millions of dollars in up-front tuition with them.

The horror stories and headlines have put a new focus on consumer protection when it comes to education. Private schools in most states are required to post a surety bond, which may help consumers get some of their money back.

But the recent closure of ComputerTraining.edu and Mile High Medical Academy illustrates why it’s important for prospective students to learn more about what safeguards, if any, are in place in the unlikely event their school goes belly up.

Computer Training Closes
A private computer skills school with 25 campuses, Maryland-based Computer Training shuttered in mid-December. More than 150 students in Pennsylvania had already paid about $2 million in tuition costs.

“Pennsylvania students paid anywhere from $13,000 to $25,000 for various computer training programs, only to be left out in the cold when Computer Training suddenly locked its doors in December”, Attorney General Tom Corbett said in a news release. “These students were trying to improve their skills and build careers - only to be abandoned to face substantial loans or debts, incomplete training and a long list of unanswered questions about their educational futures.”

The Pennsylvania Attorney General’s Office, which filed a lawsuit against the company, claims Computer Training repeatedly misled students about its financial status. The state is suing Computer Training for full restitution for each student plus civil penalties and costs.

Mile High Medical Academy
Meanwhile, pre-paid tuition for dozens of students in Denver is still in jeopardy after their private occupational school closed in late December. State officials stripped the school of its operating license after learning that an administrator had been convicted of fraud in other jurisdictions.

Given the recent spate of school closures, now is a good time for school administrators to review their financial safeguards and be prepared to address questions from concerned students and parents.

Moving Forward
At the same time, current and prospective students should do some homework and be prepared to ask tough questions of their school administrators. Share any concerns and try to get a clear picture of your school’s financial standing and potential consumer protections.

Online degree programs are an invaluable way for learners of all ages to obtain critical workplace and lifetime skills. But diploma mills and fly-by-night operators can inflict serious harm on a student’s long-term financial health.

To learn more about a particular school, consumers can check with their state’s Department of Education or Consumer Affairs/Consumer Protection agency. The National Association of Attorneys General also has an interactive map with contact information for each state’s Attorney General’s office.

Chris Birk, a guest blogger and principal at SuretyBonds.com, is a former newspaper and magazine writer and college professor. His work has appeared in more than two dozen newspapers and magazines, including the Chicago Sun-Times, the St. Louis Post-Dispatch and Insurance Journal. You can reach him at: chris@suretybonds.com

online degree programs, tuition, vocational school, consumers, students, money back, private schools, surety bond, computer training, education

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