Professional Documents
Culture Documents
Edwardsville IL 62025
Phone: 618-656-2593
Fax: 618-656-2594
Email: alvareita65@yahoo.com
Website: http://www.alvareita.com
The EDs position was far worse and more punitive in nature in early 2015 the ED cut off the schools
access to federal student loans and grants, needed by over 80% of the schools students to pay tuition,
and announced that the schools would not regain loans and grants unless they repaid all aid funds
disbursed to students after Ms. Giles death, an amount which the ED indicated it would eventually
determine. Given that most students need federal aid, the schools stopped enrolling new students. But to
allow existing students to finish their programs, the schools continued to operate with a leaner staff and
with family members sacrificing compensation and contributing around $250,000 of personal savings to
pay operating expenses.
This spring the ED announced that the schools must repay over $650,000 and until they do so they will not
be able to apply to have federal aid restored. Yesterday, Alvareitas filed a brief in an administrative appeal
which demonstrates that the governments actions are contrary to federal laws and regulations and asks
an Administrative Law Judge to overturn the EDs actions and require it to restore federal student aid to
the schools. Given the typical time involved in an appeal process of this nature, there may not be any
ruling until the holiday season has arrived.
The Alvareitas schools have a strong track record of both serving students aspiring to beauty careers and
complying with regulatory standards. Over the past several years, on average more than 60% of the
schools students have completed their programs, over 90% of the graduates have passed their licensing
exams and over 50% of these licensed professionals have obtained jobs in the beauty industry. Even more
impressive are the schools loan default rates the rate at which graduates and withdrawn students meet
their loan obligations over a three year period. Over the past 3 years, the official default rates for the
Alvareitas schools have ranged between 6.2% and 15.1%, which means an overwhelming majority of the
schools students are completing their education, getting jobs and paying back their loans outcomes
which the federal government has said define a quality educational institution.
But this high quality family owned institution that has prepared hundreds of students for beauty careers
may not be around much longer. Already Alvareitas has found it necessary to close its Belleville campus,
and the two other campuses are clinging to a day to day existence with only a handful of students. Ms.
Giles family members and other remaining staff at the schools remain hopeful that justice will prevail in
their appeal and gravely flawed actions of the ED will soon be overturned.
For more information, contact Sheila Fudge at (618) 656-2593 or alvareita65@yahoo.com or the schools
attorney Ron Holt at (816) 292-7600 or rholt@dfrglaw.com.