AhbabaOooMaoMao t1_j8klh99 wrote on February 15, 2023 at 12:05 AM

“The Office of Higher Education has been notified by Stone Academy that it intends to close,” said Timothy D. Larson, Executive Director of the Office of Higher Education in a statement. “For many months, our office has been working with the school to address a number of serious compliance issues that included unqualified faculty, invalid student clinical experiences and recording attendance.”

The OHE is offering guidance to affected students as the school closes, including "accessing transcripts, tuition refunds, loan discharges and adjustments to veteran’s benefits, and providing support for those students who intend to continue their course of study at another school."

The office is also evaluating a series of complaints regarding the quality of education at Stone Academy and the below 80% pass rate across the three campuses.

Students who have paid out of pocket for tuition, due to the school’s closure, may be eligible for a partial refund. To apply for a refund from the State of Connecticut Student Protection Account, please visit: redacted. Refunds will be proportional to the portion of the program not yet completed. For example, a student that has completed 50% of their program, will receive a refund of half of the tuition paid. Refunds will be of tuition only; no refunds will be issued for fees or supplies.

Environmental_Log344 OP t1_j8p6g0u wrote on February 15, 2023 at 11:14 PM

This would have been less painful if they let the students know the school was on shaky ground for a long time. I question allowing classes to go on at all once the OHE became aware of what was going on.

AhbabaOooMaoMao t1_j8p7m90 wrote on February 15, 2023 at 11:23 PM

With regulatory compliance* there's usually a notice and an opportunity to cure. Only after refusing or failing to cure does the agency move to enforcement, and that's usually only fines.

Environmental_Log344 OP t1_j8p8cu9 wrote on February 15, 2023 at 11:28 PM

Stone Academy just ruined a few lives. If they knew they were about to tank, which they would know from the agency noticing them, they just got whatever they could get before the agency acted. Then they jumped ship. Of course, we were not there to really judge what was happening but it sounds like they could have come clean to the students before a fresh round of semester loans came up.

AhbabaOooMaoMao t1_j8pggl5 wrote on February 16, 2023 at 12:27 AM

For profit colleges. Of course they aren't going to tell the students they're about a tank. They will take every last check, and then stiff their workers too; their directors and officers are likely legally obligated to do so, lest the investors be the ones defrauded. Betsy DeVos probably owns the equity fund that probably owns this school. Fuck a refund, we need to start eating these people. Richest country ever to exist, college or trade school should be free for anyone that wants to attend and gets accepted to a program.

Environmental_Log344 OP t1_j8pkysp wrote on February 16, 2023 at 1:01 AM

You are right, except there are public high schools that offer trades. And I think community colleges are about to be free?

Agreed. Telling everyone their dilemma would just rush the process. They used that evaluation period to wipe up as much as they could. Poor students, went there for a high price and won't even get that worthless certificate of completion. Or the non-existent job placement assistance. Boy, have times changed.

Can you elaborate on this: "workers too; their directors and officers are likely legally obligated to do so, lest the investors be the ones defrauded". It isn't clear about the obligated party.

AhbabaOooMaoMao t1_j8pm2gh wrote on February 16, 2023 at 1:09 AM

The directors and officers of a corporation owe a fiduciary duty to shareholders, not to customers. If the directors or officers do something unreasonable and tank the corporation's value, the shareholders or ownership can sue the directors or officers for the breach of duty. That could include revealing information that would benefit customers to the company's detriment.

They might also screw their workers by closing the doors without notice and then not issuing final paychecks or honoring other compensation obligations.