Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, December 17, 1993 TAG: 9312170192
SECTION: VIRGINIA PAGE: B4 EDITION: STATE
SOURCE: LESLIE TAYLOR STAFF WRITER
DATELINE: LENGTH: Medium
Carol Buchanan, an associate specialist with the department, said Thursday that a department decision that essentially prevents the school from enrolling students for 30 days, "really has to do with Richmond and Lynchburg."
"The Roanoke campus has been doing fairly well under the direction of their director," Buchanan said. "But the action was taken against all three because they are all branches of the same school."
Career Training Center, founded 10 years ago, trains young adults in vocational medical careers such as nursing assistant and medical assistant.
The department last week withdrew the school's program approval for 30 days, keeping the school from enrolling students. The action was prompted by complaints from students and staff, Buchanan said.
"There were concerns about instructors - not having one; books not coming in on time; students not having uniforms they paid for," she said. "Staff paychecks bounced. There was a delay at one point where the staff was to be paid on a Friday and it was Tuesday before they actually got paid."
Buchanan said the department wants assurance that the school is financially stable enough to continue operating. When the 30 days is up, the department will decide whether to reinstate the school, she said.
Robert McGinty, president of Career Training Center, said earlier this week that the school has had a cash flow problem. The poor financial condition was linked to its high student loan default rate - 57.7 percent in 1991, the most recent statistic reported by the U.S. Department of Education.
The high default rate, McGinty said, made it difficult for the school to obtain student loans. That meant lost finances and, eventually, affected the school's ability to meet its financial obligations, he said.
A majority of the school's students require some kind of financial assistance, McGinty said.
The state department's action was followed by a 30-day suspension of the school's participation in government student loan programs. The Virginia Student Assistance Authorities issued that suspension.
The school is working to reorganize its operations, McGinty said this week. He said he expected the reorganization to be completed before students return after the holiday break.
The 30-day action will coincide with much of the break. Classes ended Dec. 15 and are to resume Jan. 10.
This year, four secondary trade schools in Virginia have closed, Buchanan said.
"The same thing that happened with those schools is the same thing that is essentially happening with the Career Training Center," she said. "It's what has been happening with the whole proprietary school sector. The U.S. Department of Education is making their programs more accountable for defaults and outcomes."
The schools that closed are: CDI Career Institute in Falls Church, the Virginia Institute of Technology in Virginia Beach, the Mansfield School of Business in Virginia Beach and the Barkley Career School in Norfolk.
Memo: shorter version ran in the Metro edition.