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After being denied Title IV funds, Florida Coastal sues Education Department
The Florida Coastal School of Law. Photo from Wikimedia Commons.
Florida Coastal School of Law, which lost its federal financial aid in April, and by June had an approved teach-out plan with the ABA, sued the U.S. Department of Education on Tuesday, alleging the agency acted arbitrarily and capriciously, without due process, when it terminated the for-profit school’s participation in the loan program.
The law school, which is the last of three for-profit schools still in business owned by InfiLaw, an entity of the private equity firm Sterling Capital Partners, filed the action in the U.S. District Court for the Middle District of Florida. The law school also filed a July 20 emergency motion for a temporary restraining order, asking that court vacate the Department of Ed’s April 2021 decision to end Florida Coastal’s participation in federal financial aid programs.
Teach-out plan for Florida Coastal approved; classes will end after summer term
The Florida Coastal School of Law. Photo from Wikimedia Commons.
Following the U.S. Department of Education recently pulling federal financial aid at the Florida Coastal School of Law, a teach-out plan has been approved, with current students finishing courses at other ABA-approved law schools.
The law school is the last of three for-profit schools owned by InfiLaw, an entity of the private equity firm Sterling Capital Partners. In April, the DOE terminated Florida Coastal’s access to federal financial aid.
The department denied a reinstatement request in May, and in a news release, it stated that a private equity firm with 98.6% ownership in the school had relinquished its ownership.