Continued Aid
Mitchell Fuerst, president of Success Education Colleges, has successfully helped teach-out students from eight other schools. Things often go wrong when the school is barred from federal student aid, he said.
“The minute they cut off Title IV, that cuts of the lifeline of the institution,” Furst said. “They will have a precipitous closure.”
The department made several proposals in draft regulation to continue support for struggling schools, including allowing closing schools to receive financial aid for up to four months and remain accredited long enough to put a teach-out in place.
The department also proposed clarifying that teach-out plans can happen before a school closes and that they must identify other programs where students could be sent.
“We need to redefine what a teach-out is and do it in such a way that allows a school to raise its hand earlier and say, ‘We’re having some financial challenges here,’” Jones said last month in an interview with Bloomberg Government.