Legal Question in Education Law in California

Student loan

I received a student loan through a private college so that I could get a degree/certificate, in "Medical Transcription". The loan is $8,500. and the course runs 9 to 12 months. The start date: August 31,1999 and finish date: is October of 2000. Within 2-months, we were informed the course was new and that we were the first 4 students to sign-up. We later found out that the course is no longer offered, but we would be able to finish out our education. The school was sold to another school, but they only offers computer courses. We have poor computer equipment, very few resources, no classroom lectures, basiclly your on your own. I want to go to another school, but I don't feel that I should pay for this loan, because the school is the only one that seem to have benefited from this loan. Can I file something or have the school investigated. I am still attending,(but barely). I have gotten no-where with this education. I am not the only one that feels this way. We have seen Directors of Education, Administration Staff, Vice Presidents, and now Owners, come and go at least three times just within the months of "August,99 to June,00". I really feel cheated. HELP!


Asked on 7/03/00, 2:47 am

1 Answer from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP

Re: Student loan

I doubt that the loan is the real issue here, nor does it sound like an education matter. Without further information, I'd say you have a case of breach of contract. Since you don't have a public educational institution, but, rather, a private post secondary school, the laws that apply to governmental entitities won't apply nor will most of the education code. Without further information and research, I can't say.

Nevertheless, you paid money for a service promised. The service wasn't provided. This sure sounds like breach of contract. The question, of course, is how you go about getting your money back. My suggestion is to take the school to small claims court. Small claims court is limited to $5000, but anything above this amount would have to be in a regular court. You can try to do a lawsuit by yourself in the Superior Court, but most people find it way too daunting. You'd have to hire a lawyer and it's virtually impossible to do even a simple trial for less than, say, $10,000.

Small claims is cheap, easy and fast and the judge usually helps you along. Everyone in the school who feels cheated should file a separate claim for however much they've paid up to $5000. My guess is that the school will try to show that you got some benefit from the education, while it will by your job to try to show that you derived no benefit from the education. The judge will then decide. Good luck.

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Answered on 9/07/00, 1:58 pm


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