A Blown Deadline Could Cost a For-Profit School Millions
Photographer: Getty Iamges
Charlotte School of Law has lost its license to operate in North Carolina after failing to finalize a deal offered by Education Secretary Betsy Devos before a state-imposed deadline. The school's future is now in doubt, opening the door to millions of dollars in potential debt relief for its students.
The Obama administration in December accused the school of misleading its students about its accreditation and former students’ bar-passage rates and banned it from accessing federal student aid—the lifeblood of most U.S. colleges. The school, indirectly owned by two funds operated by the Chicago-based private equity firm Sterling Partners, denied the allegations and has attempted to convince the Trump administration to reverse the Obama-era decision. Avi Epstein, general counsel and chief compliance officer for Sterling Partners, did not respond to a message seeking comment.