In the Matter of Docket No. 97-110-ST
TRAINING CENTER, Student Financial Assistance Proceeding
Appearances: Christopher Chism, of Consumer Electronics Training Center of Chicago,
Illinois, for Consumer Electronics Training Center.
Renée Brooker, Esq., Office of the General Counsel, United States Department of
Education, Washington, D.C., for Student Financial Assistance Programs.
Before: Judge Ernest C. Canellos
Consumer filed a request for a hearing challenging the findings of the notice.See footnote 11 On June
30, 1997, I issued an Order Governing Proceedings requiring Respondent to file its brief on or
before September 27, 1997. On October 17, 1997, SFAP filed a Motion For Default Judgment
against Respondent on the ground that Consumer had failed to comply with my order. To date,
Consumer has not filed any submissions in compliance with my order.
In accordance with my obligation to regulate the course of this proceeding and the
conduct of the parties, I have the authority and the discretion to terminate the hearing process and
issue a decision against a party if that party does not meet time limits established pursuant to my
order. See, 34 C.F.R. § 668.117(c)(3). As such, I find that the institution's failure to file a
submission in compliance with my order warrants the termination of this proceeding. More
important, after a review of the notice to terminate and SFAP's initial brief, I am convinced that
the findings contained in the notice sufficiently state allegations in a manner that demonstrate the
existence of a prima facie showing that the institution's cohort default rate for fiscal year 1994
was in excess of the statutory minimum of 40%. Notably, the institution, in its request for
review, did not provide any evidentiary basis for concluding that its cohort default rate was in
compliance with the statutory minimum for fiscal year 1994 or any other fiscal year at issue in
this proceeding. Accordingly, Consumer's failure to prosecute its appeal of the notice to
terminate compels me to find that SFAP's determination, that the institution's eligibility to
participate in programs authorized under Title IV should be terminated, is proper.
On the basis of the foregoing findings of fact and conclusions of law, it is HEREBY ORDERED that the hearing process initiated pursuant to the institution's request for a hearing is TERMINATED. It is FURTHER ORDERED that Consumer Electronics Training Center's eligibility to participate in programs authorized under Title IV of the Higher Education Act of 1965, as amended, is terminated.
Ernest C. Canellos
Dated: November 6, 1997