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Lawyers, students and advocates ask legislature for scholarships and tuition relief after Stone Academy closure
Summary
Attorneys and former students urged the Higher Education Committee to adopt legislative measures—including scholarship funding and reimbursements from the Student Protection Account—to help hundreds of former Stone Academy students whose credits and finances were disrupted by the school’s sudden closure.
Counsel for hundreds of former Stone Academy students told the Higher Education Committee that a swift legislative remedy is needed after the for‑profit school’s closure left many students with unusable credits, outstanding out‑of‑pocket tuition and stalled career pathways.
Attorney David Slosberg, representing the class, said litigation and a court‑approved settlement produced results but could not fully address all students’ practical needs; he said judge‑approved settlements and prior statutory changes had not restored credits or provided teach‑out options for many students. He said the hearing record includes dozens of impacted students who cannot transfer credits, cannot get timely federal loan relief, and remain financially exposed.
Slosberg and a co‑testifier outlined two legislative concepts in testimony: (1) an amendment or clarification to permit reimbursement from the Student Protection Account for out‑of‑pocket tuition expenses tied to unusable credits (the testimony referenced a “raise bill 7 0 9 8” and related text) and (2) a targeted scholarship/tuition‑assistance program to help former Stone students enroll in alternate, credentialed nursing and allied‑health pathways. Witnesses estimated roughly 981 students in a related cohort and conservatively estimated 500 students might immediately use a targeted program; the proponents requested an illustrative appropriation of $10,000,000 to fund scholarships and re‑training slots, and they suggested phasing and use of existing COVID‑era or other funds where feasible.
Former Stone students gave first‑hand testimony describing lost time and money, loan and financial‑aid complications, long commutes to alternate training programs, and delays obtaining paperwork necessary for licensing and employment. Some said federal loan relief mechanisms are slow and that many students remain in limbo while deferments and other temporary measures expire.
Proponents asked the committee to craft a legislative solution that combines reimbursement for certain out‑of‑pocket costs and a state‑sponsored scholarship or retraining fund tied to high‑demand workforce pathways (nursing and allied health), and to consider using available state funds or stretching implementation across budget years. The committee did not take a vote at the hearing; attorneys and advocates asked staff to continue negotiations about funding sources and program design.
