This week, the cosmetology school shut down all 79 of its locations nationwide, including one in Austin. Some students say they got little notice and the news came as a surprise to staff as well.
“The students and the teachers, we’re a family and to know that we’re not going to see each other anymore, that we’re scattering throughout Austin trying to find where to go, I’m sad on that part,” said Nature Nunez, another former student. The Texas Department of Licensing and Regulation is currently working with students to place them in other schools. On Friday night, the TDLR website listed six schools in Austin that would take displaced students.
“How did this happen? In short, the organization does not have the cash to continue to run the business,” Regency Beauty Institute posted to its website. “There are multiple intertwined reasons: Declining numbers of cosmetology students nationwide, a negative characterization of for-profit education by regulators and politicians that continues to worsen and, in light of these factors, an inability to obtain continued financing.”
Regency Beauty Institute was differing missions to fall under various accrediting agencies and departmental oversight. Regency was accredited through the National Accrediting Commission of Career Arts & Sciences. That organization requires a school to give 30-days notice to the commission for a planned closure. However, in the event of an unplanned closure, a school is required to supply notice and further plans after the shutdown.
“Although NACCAS has been in communication with Regency, and the U.S. Department of Education, in recent months concerning Regency’s financial status, at no time did Regency ever indicate that it was considering an imminent closure of its schools,”
This is a trend seen repeated in the for-profit college industry, such as in the downfall of Corinthian Colleges last year. One of Corinthians chains, Heald College, had been discovered to actually paying employers to hire some of its graduates temporarily to inflate their job placement figures, only to have the employer fire the graduate after a day or two. Another big For Profit School that closed it doors with only a email sent to the students and staff the day prior was ITT Technical Institute we see this happen more and more as the For Profit School Industry takes a turn for the worst.
What to do next if you Regency Beauty Institute
Thankfully, the federal government has been stepping up its efforts to crack down on these gluttonous for-profit colleges, responsible for so much unnecessary debt suffered by their victims. Unfortunately, students aren’t likely to see relief directly from this lawsuit for some time to come. Fortunately however, there is something former students can do in the meantime. The FTC estimates that some 60,000 to 70,000 former students may be eligible to have their loans forgiven through new federal student loan forgiveness programs put into place by the Obama administration. This is great news for former Regency Beauty Institute students, as these kind of lawsuits can take several years to complete and see monetary compensation come into fruition. Students who believe they’ve been victimized by Regency Beauty Institute deceptive marketing practices can call (844)766-5462 to see if they qualify to have their loans forgiven.This will not affect any monetary gain that may result from this lawsuit. Former borrowers owe it to themselves to cut these for-profit colleges off at the legs and stop paying absorbent student loan payments.
To See If You Qualify Fill Out The Form Below
Or Call 1(844)766-5462