The Phoenix campus of Anthem College (Bryman School) abruptly shut its doors without warning on August 29th, leaving students feeling confused and helpless. While students were informed via email that the school may close after its parent company, Anthem Education, filed for Chapter 11 bankruptcy, they were not advised that the closure would happen only hours after the school sent out the email.
Anthem Education is a for-profit group of colleges that boasted 41 campuses, two of which are in Arizona, prior to filing for bankruptcy. Just before filing a petition for Chapter 11 bankruptcy, Anthem education sold 14 of its campuses to International Education Corporation.
Anthem was attempting to sell 14 more of its campuses to IEC, but the U.S. Department of Education did not approve the transaction in time, leaving nine of the 14 campuses closed. The Department of Education denied having received an application from Anthem by close of business on Thursday night.
When Anthem Education filed for bankruptcy, all campuses immediately became ineligible for federal student aid, which made up almost 90% of the institution’s revenues. Students at the Phoenix Anthem campus took out an average of $8,165 per student in the Fall 2012 school year.
While the closure is heartbreaking for students in the area, it may be a better option in the long run. Had the school been sold, even if the sale had been to a questionable party, students would have little to no ability to discharge their loans. With an official closure, students will be able to take certain measures to get a refund or have their loans discharged.
The Phoenix bankruptcy attorneys at Curry, Pearson & Wooten wish the students at the Phoenix Anthem campus luck in their journey to get their loans discharged, and encourage them to continue pursuing their education.