Charlotte School Law, the for-profit school that lost eligibility to federal student loans in January, has submitted a teach-out plan that would allow students to complete their education at Florida Coastal School of Law, the ABA Journal reports
According to ABA Journal, both schools are part of the Infilaw System, which is owned by the private equity firm, Sterling Partners.
"The submitted teach-out plan will be considered by the council of the Section of Legal Education and Admissions to the Bar at its March meeting, according to Taylor’s email. Under the plan, Florida Coastal will disburse Title IV funds, with Charlotte School of Law being the degree-granting institution. It’s expected that the plan will run until December 2019, which is reportedly the last anticipated graduation date of currently enrolled students," the ABA Journal said.
The Charleston Post and Courier reports
that the fate of the Charleston School of Law is uncertain, with its owners stating that additional information about the school's future will not be made known until next week.
According to a law school spokesman, the school's owners "are working diligently to see it preserved and improved by someone or some entity, either profit or nonprofit, that actually has the experience to run a law school and is capable of obtaining a license from the South Carolina Commission on Higher Education and accreditation by the American Bar Association.”
The school has been embroiled in controversy for nearly a year following disclosure that a sale to a for-profit company was being explored.
A report earlier this month in the Post and Courier indicated that the school was considering not enrolling students for the fall 2015.
Charleston School of Law, which may be sold to a for-profit company, is enduring continuing controversy, as faculty members receive buy-out offers, a former dean levies blistering criticism at the plan to convert the institution into a for-profit business, and its founder severs ties to the school.
The Post-Courier in Charleston, South Carolina, has recently reported on a number of significant developments at the school that has been buffeted by controversy following the July 2013 announcement of a potential sale to the for-profit InfiLaw System.
According to the Post-Courier, "Opponents of a sale to InfiLaw, which includes many students, faculty and members of the state’s legal community, have said they think a sale to InfiLaw would decrease the value of a Charleston School of Law degree because the company’s three other law schools have lower standards than the Charleston school."
Most recently, the newspaper disclosed
that the law school's founder, Ed Westbrook, had resigned from the school's three-member board and is planning to sever ties to the school that he opened with a small group of lawyers and judges in 2004. According to the newspaper, Westbrook is interested in converting the school to a nonprofit, while the two other board members wish to consummate the sale to InfiLaw. The newspaper had previously published
an item disclosing that the school's founding dean, Richard Gershon, had "published a scathing blog post" about the other two board members, George Kosko and Robert Carr, in which he called them "the embodiment of lucre and malice."
Earlier this month, the Post-Courier reported
that the law school is offering buyouts to select faculty members, including those with tenure. The offers are part of the law school's ongoing efforts to resolve financial problems.
The American Bar Association, the nation's leading accreditor of law schools, has deferred a decision about whether to approve the controversial sale of Charleston School of Law to a for-profit company, according to a newspaper report
. Before InfiLaw can take over the financially strapped law school, the company must secure a license to operate from the State of South Carolina and ABA approval of the sale. According to the report, "The law school's faculty is overwhelmingly opposed to the sale along with many students, alumni and members of the state's legal community. They think the company's three other law schools have lower standards than the Charleston school. A sale to InfiLaw would decrease the value of a Charleston School of Law degree, opponents have said."
by the Charleston, S.C. Post and Courier newspaper, the Charleston School of Law is facing upheaval after the founders of the decade-old school withdrew about $25 million in profits. According to the newspaper report, "Kevin Hall, a Columbia lawyer who represents InfiLaw System, a company trying to purchase the school, revealed the surprising financial information about founders Robert Carr, George Kosko, Ralph McCullough, Alex Sanders and Ed Westbrook at a public hearing last week. 'The Charleston School of Law, ladies and gentlemen, is in a financial tailspin,' Hall said. Carr, Kosko and Westbrook, the three remaining owners, confirmed Hall's description of the school's financial situation, and they all agreed that it got that way because owners for years had been pulling profits from the institution. But they disagree sharply on the school's future."