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March 24, 2010

The fallout from ComputerTraining.edu's collapse -- owner David Rau speaks to The Baltimore Sun

computertraininglogo.jpg

 In late December, a for-profit trade school called ComputerTraining.edu abruptly closed its doors, leaving students and employees with barely any notice that they were going out of business.

Students paid at least $13,500 for tuition at locations in 14 states, including two in Maryland. Stories were written about the school's sudden closure in communities across the country where the school operated. Some students and employees have kept in touch through Facebook.

A few talk about organizing a class action lawsuit. In some cases, it seems, students are applying to their respective states for refunds of their tuition (for-profit schools usually have to post a bond for each student, which can be used for such refunds.)

Why did ComputerTraining.edu, which is based in Hunt Valley, Md., close so suddenly? What happened to all the money it had been making and the $1.5 million business loan it obtained from lender BB&T? Are former employees entitled to any kind of severance?

My latest story appearing today tries to answer some of these questions, along with comments from David L. Rau, the school's owner, who had until earlier this week avoided the news media.

Here's the March 24th story.  

And then there are my two previous stories about ComputerTraining.edu:

 

:: Hunt Valley computer training school closes unexpectedly, Jan. 7, 2010

:: BB&T sues closed computer school over loan, statements, March 16, 2010

This post will evolve, like a Wiki, as all of you help contribute to the research effort. If you're a former student or employee of ComputerTraining and wish to be of help, leave comments below about your personal experiences with the school. Or email me directly at gus.sentementes(at)baltsun(dot)com with your detailed account.

If you're an earnest Internet detective, we could use your help in finding facts. Only post facts and links -- libelous comments and personal attacks against individuals will be screened out. I will curate the information and post on the jump.

 

Other outstanding questions that remain:

:: Why was ComputerTraining's tuition $13,500 in some states (such as Maryland), but more than $27,000 in other states, such as Ohio?

 


This is an archived version of the technology blog. For updated coverage, see the current baltTech location: baltimoresun.com/balttech
Posted by Gus Sentementes at 8:00 AM | | Comments (3)
Categories: *NEWS*
        

Comments

13,500 hell, try 25,000 in 2007 for the class.

Tuition was different in most campuses. If a center had high volumn than most likely they could get away with charging more. For some campuses that were already struggleing they lowered it to 13,500. After the first lay off in April 09, every campus lowered their tuition ranging from 10-18,500. They wanted to eventually raise it back to 28,500 but obviously that never happened

Someone should ask about the parties that the Owners and Admission staff used to have on the beaches and cruises. And why in the fall of this year, Management took some of their (all female 24-28 year old staff) on a trip to Florida, when they were in serious financial trouble.

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About Gus G. Sentementes
Gus G. Sentementes (@gussent on Twitter) has been writing for The Baltimore Sun since 2000. He's covered real estate, business, prisons, and suburban and Baltimore City crime and cops. He was one of the first reporters at The Sun to use multimedia tools and Web applications -- a video camera, an iPhone -- to cover breaking news. He hopes to cover Maryland geeks and the gadgets and Web sites they build, and learn -- and share -- something new every day.

Gus has a wife, a young daughter and two feuding cats. They live in Northeast Baltimore.
This is an archived version of the technology blog. For updated coverage, see the current baltTech location: baltimoresun.com/balttech
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