This agreement has been approved by the bankruptcy court.
On February 8, 2008, Attorney General Jack Conway announced that his Office and the bankruptcy trustee for Decker College, Inc., have reached an agreement that, if approved by the bankruptcy court, will provide relief for thousands of former Decker students. The agreement has been presented to U.S. Bankruptcy Court Judge Thomas Fulton for approval.
Please see the Frequently Asked Questions for more information.
Pertinent terms of the settlement
Students with loans owing to Decker
Students who were enrolled in the Associate of Applied Science Degree (“AASD”) Programs (Carpentry, HVAC, Plumbing or Electrical Sciences) and who obtained loans that were funded directly by Decker will have their outstanding loan balance immediately released by the Trustee. This group includes approximately 2,200 students and $4.5 million in loans. These loans were made generally between the months of February and September 2005 and have been referred to as the Wilson & Muir Bank & Trust Co. and Citizens Union Bank loans because Decker had transferred the loans to these banks. These students will receive a letter from the Office of the Attorney General and the Trustee within thirty days of the Court’s approval of the settlement, advising them of this release and providing information on how the student may notify credit reporting agencies to remove unfavorable references to the debt. If the student made actual payments on the loan, he or she may also be able to obtain a refund under the process set out below in the event sufficient funds are recovered by the Trustee.
Students with loans owing to other lenders
Students who incurred debt to attend Decker’s AASD Programs (Carpentry, HVAC, Plumbing or Electrical Sciences) after April 1, 2004 and whose loans were funded by other banks or lending institutions could receive a refund toward these loans provided the student meets certain criteria, but only if sufficient assets are ultimately recovered by the estate through the bankruptcy process. Because many Decker students had multiple loans, some of the 2200 students whose loans have been released may also have loans with other lenders that are not released. In order to be eligible for a refund, the student must have obtained the loan to attend the AASD Program after April 1, 2004; did not complete the Program; did not transfer credits to another educational institution; and was not eligible to have his/her loan discharged under certain federal discharge provisions. If sufficient assets are recovered by the Trustee, these students will receive written notification from the Office of the Attorney General of the availability of refunds. At that time, the student will be required to submit an Affidavit and supporting documentation to the Attorney General regarding his or her eligibility to receive a refund.
Students who filed individual Proofs of Claim
Approximately 357 students individually filed Proofs of Claim in the bankruptcy. The Trustee also has agreed that if the student meets the criteria listed above, the Trustee will not object to these claims (up to the actual amount of the student loan) and these claims will be processed on an individual basis, which means that the student may be eligible for a refund if sufficient assets are recovered by the Trustee. Any other rights an individual claimant or the Trustee might have under federal bankruptcy law by virtue of the student’s Proof of Claim are not affected by the settlement.
Other information
The Attorney General, in exchange for the relief secured for the students, has agreed to waive any civil penalties it would otherwise seek against Decker College, but specifically reserved the right to pursue any individuals or related entities of Decker College for violations of the Consumer Protection Act. The Trustee does not concede that Decker College, Inc. operated the Program (or any other programs) in a deceptive or unlawful manner in violation of the Consumer Protection Act.