PADUCAH, Kentucky — A shuttered Kentucky college is hoping to collect $11.7 million in student tuition payments and return to operations as a Bible college.
Officials with Mid-Continent University said the payments along with $200,000 received from a trust could put the school and its 12 employees back on track. The college's leaders are also considering selling the main campus north of Mayfield.
The Paducah Sun reported (http://bit.ly/10ExoRj ) that details about the plans to reopen the school surfaced during a bankruptcy hearing Thursday in U.S. District Court in Paducah.
Mid-Continent shut its doors in June and filed for bankruptcy protection in September. The closing came after several misfiled rounds of paperwork led the U.S. Department of Education to cut off financial aid. This spring, the DOE informed MCU that it still had not supplied the needed records.
The college has about 300 creditors, three of which the school owes more than $300,000 each.
Vice President of Finance and Administration Tim Walker said bankruptcy became necessary when the school couldn't reach an agreement with creditors and ran out of money.
"I don't have any plan of not collecting these student loans," Walker said.
Mid-Continent is currently under investigation by the attorney general's office regarding the college's plans to offer its own student loan program. Walker said he expects the investigation to end soon. A reopening would produce a smaller operation than before, Walker said.
"The mission of the entity is to get back to the roots and continue biblical study," he said.
Information from: The Paducah Sun, http://www.paducahsun.com
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