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PHILADELPHIA TRAINING CENTER CORP. v. STATE OF GA.

Civ. A. No. 92-3686.

822 F.Supp. 239 (1993)

PHILADELPHIA TRAINING CENTER CORPORATION and PTC Career Institute of Georgia, Inc. v. STATE OF GEORGIA, Stephen Dougherty, in his official capacity as Executive Director of the Georgia Student Finance Commission, Georgia Higher Education Finance Commission, an agency of the State of Georgia, Georgia Higher Education Assistance Corporation a division of the Georgia Student Finance Commission, and Kitty McDonald, in her official capacity as Director, Georgia Higher Education Assistance Corporation.

United States District Court, E.D. Pennsylvania.

May 12, 1993.

Attorney(s) appearing for the Case

Gloria M. Satriale, Philadelphia, PA, David O. Drake, Agoura Hills, CA, for Philadelphia Training Center.

Gloria M. Satriale, Philadelphia, PA, David O. Drake, Agoura Hills, CA, for PTC Career Institute of Georgia, Inc.

Virginia H. Miller, Dilworth, Paxson, Kalish & Kauffman, Philadelphia, PA, Michael J. Bowers, Atlanta, GA, for defendants.

OPINION

PADOVA, District Judge.

This case presents an important question of first impression: Whether a "lender of last resort" under section 428(j) of the Higher Education Act of 1965, as amended (the "Act"), 20 U.S.C.A. § 1078(j) (West Supp.1993), may base its federal student loan lending decisions upon information disclosed in an applicant's credit history? The parties agree that this question is entirely legal in nature, and plaintiffs have accordingly...

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