SAN ANTONIO -- Hundreds of students are taking the now-closed Career Point College to court, arguing the school left them with no education, no transcripts, and potentially thousands of dollars in student loan debt.
A motion for a temporary injunction was canceled Tuesday morning after one of seven entities associated with the college filed for bankruptcy protection.
The case will now be handled by the U.S. Bankruptcy Court.
Aric Garza, an attorney representing a growing number of students in a lawsuit against the company, said he expected the move.
Garza said a federal bankruptcy trustee will go over the financials of Dickinson of San Antonio, Inc. in an attempt to figure out the extent of their assets and whether there have been any improper transfers of money.
He also hopes to answer questions on behalf of students who feel left in the dark.
“How to transfer their credits to other schools,” said Garza. “What happens to their loans? Can they be discharged?”
Career Point College suddenly closed its campuses in San Antonio, Austin, and Tulsa on Oct. 16. The move affected an estimated 1,200 students in San Antonio, who were notified via email.
Two separate lawsuits were filed alleging misappropriation of grant and scholarship money, and inappropriate practices used to elicit loan payments from students.
A temporary restraining order was granted forbidding the school from destroying any academic or financial records related to a U.S. Department of Education’s investigation into the company. The order also required the school turn over transcripts within 48 hours.
But many students said they either never received a transcript or received on with information missing, only to find the majority of their credits weren’t transferrable.
“I invested my entire college funds with them,” said student Shelby Limmer. “I’m kind of screwed right now.”
Garza said most students are able to get federal loans forgiven, but private loans are a different story. A number of students report having between $5,000 and $15,000 in private loans with high-interest rates of 12 percent or more.
Right now there’s no date set for when bankruptcy proceedings will begin, but attorneys representing the plaintiffs in both lawsuits estimated a week to ten days.