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Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Wednesday, January 18, 2017

Charlotte Law School To File Teach-Out Plan With ABA To Protect Students As School Shuts Down

Charlotte Logo (2016)Following up on my previous posts (links below):  ABA Journal, Teach-Out Plan for Charlotte School of Law in the Works:

Charlotte School of Law will file a teach-out plan, which the council of the ABA’s Section of Legal Education and Admissions to the Bar will review, managing director Barry A. Currier told the ABA Journal on Tuesday.

The U.S. Department of Education website for federal loans describes teach-out plans as “a written course of action a school that is closing will take to ensure its students are treated fairly with regard to finishing their programs of study.”

If a school closes while students are enrolled, and the closure prevents them from completing their programs, students could be eligible for 100 percent discharge of Direct Loans related to the program, according to the site. It also notes that loan discharge could be available to students if their school closes within 120 days after someone withdraws from the program.

Charlotte Law School, Update from President Ogene and Dean Conison:

Dear Charlotte School of Law Students,

We fully appreciate your concern regarding the future of Charlotte School of Law and your legal education. Many of you have asked for more detailed information than we have been able to provide so far. As law students, however, you understand better than most that negotiating complicated matters needs to take place in private, and not in the public domain. While there are still issues to be resolved, the following is what we can state as we head into the spring semester.

As previously announced, the School of Law will open for classes on January 23rd. We are working with the ABA and our North Carolina state authorizing agency on the implementation of a plan that will enable currently enrolled students to complete their program of study and receive a J.D. from the Charlotte School of Law. The plan will involve collaboration with another ABA-accredited law school to participate in the teach-out.

While we have not yet reached an agreement with the Department of Education respecting the precise conditions for the release of the second disbursement of Direct Loan proceeds to those students entitled to such funding, we and the Department agree that there is a path forward to reach such agreement. Regardless of when agreement for the release of Direct Loan proceeds is reached, CSL students entitled to such funds will have the anticipated amounts credited to their tuition and fee accounts.

We are working diligently to put in place alternative financing for those students who are not entitled to second disbursements of Direct Loan proceeds. We will have more details on student support over the next several days.

This has not been an easy time for any of the members of the Charlotte School of Law community, whether students, faculty, staff or administration. The uncertainty of the past few weeks has been unsettling to all of us. But we share the common goal of enabling you to achieve your goal of receiving your law degree.

Finally, we will schedule a student town hall when we have more details to share. In the meantime, we hope this update is helpful.

Prior TaxProf Blog coverage:

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Wonderful news!

Posted by: lawprof | Jan 18, 2017 2:23:43 PM

To be clear, this means the school is shutting down, correct? Mr. Conison references the teach out, but does not explicitly say the school is closing (a strategic omission, perhaps)?

Posted by: Anon | Jan 18, 2017 3:29:20 PM

. . . and now the other shoe drops . . .

Posted by: Old Ruster from the former JDJunkyard | Jan 19, 2017 8:58:05 AM