Charlotte School of Law expects to offer federal loans to students for the fall semester. But to stay open, it must convince its state licensor the school is financially stable. That deadline is Tuesday.
It's up to the UNC Board of Governors to decide if Charlotte School of Law can remain open. In June, the board told the school it had to present proof of compliance with state financial standards by August 1st. That includes securing a bond that covers prepaid tuition for all students, in case the school closes. By August 10th, the school must secure approval from the American Bar Association for its plan going forward and get the U.S. Department of Education to reinstate federal loans for students.
The school's dean Paul Meggett said in a prepared statement Charlotte School of Law continues to work closely with the ABA and UNC Board of Governors "to resolve all remaining compliance-related matters." He pointed out some inroads with the Department of Education that would allow students "to complete their legal education."
The school says it has agreed to follow certain conditions set by the department to receive federal loan money. But it did not say what they are, nor did the school respond to further questions.
An education department spokesman only said discussions with the school are ongoing and until they reach a successful conclusion, Charlotte School of Law will remain ineligible to participate in the federal loan program.
The department yanked that money last December after the ABA found the school accepted too many unqualified students. The school is currently under investigation by the state attorney general's office.