From Inside Higher Education, For-Profit College Chain Sues to Keep U.S. Aid
In the lawsuit, filed in a federal district court in Alabama, ECA (Virginia College's parent company) says it enrolls about 20,000 students -- although it’s unclear from the complaint if that number refers to just Virginia College or all ECA institutions.
It announced plans last month to phase out 26 campuses, about a third of its total footprint, by December 2019. The company said it took that step because of declining enrollment in the affected markets.
When a college makes plans to close a campus, it’s required to formulate what’s known as a teach-out process that will allow students still enrolled to either complete their degrees or transfer their credits to another institution. The lawsuit argues that without the restructuring plan in place -- and continued access to Title IV -- ECA won’t be able to fulfill those obligations.