LOUISVILLE, Ky. (AP) — Attorneys for a defunct for-profit college plan to pursue about $32 million in funds from the U.S. Department of Education after a bankruptcy judge's ruling that the government cut off the money based on misstatements.
U.S. Bankruptcy Judge Thomas H. Fulton ruled last week that the Council on Occupational Education misled the U.S. Department of Education about whether some online courses offered by Louisville-based Decker College had been approved. Those statements led the federal government in 2005 to cut off student loan funding for the school, which had been run by former Massachusetts Gov. William Weld.
One of Decker's attorneys, Peter Coffman, says the ruling clears the way for the school to pursue the money and possibly pay off creditors and repay students who got stuck with loans.