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April 23, 2010

Geos students unlikely to get refunds

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Many Geos students have paid for tuition fees in lump sums and are unlikely to get refunds. The Yomiuri reports: 'Thousands of students were caught off-guard and could be left out of pocket by the collapse of Geos Corp. on Wednesday, with many unaware the major English conversation school was in financial straits.'

A company employee said, 'I paid 300,000 yen-plus in February for annual tuition. I was concerned as Nova had collapsed a while ago, but I didn't expect Geos would also go belly-up.' A 22-year-old student who arrived at the Sangenjaya branch in Setagaya Ward said she paid 250,000 yen in annual tuition in mid-March. 'The school insisted that I pay it in a lump sum,' she said wistfully.

Geos executive Hitomi Suhara announced at a press conference Wednesday, 'Suhara said it would be "rather difficult" to refund students who had paid their tuitions in lump sums because the firm's financial condition "isn't very good."

A 43-year-old woman of Chofu, western Tokyo, arrived at the Geos' Sengawa branch in Chofu on Wednesday afternoon after hearing of the bankruptcy. "This is the second time this has happened to me [following Nova]," she said. "All I can do is laugh at my bad luck." She began sending her son, a fifth-grader, to the branch last year and paid more than 200,000 yen for annual tuition. However, he has so far attended classes worth less than half of the tuition. As the woman was left out of pocket after paying more than 600,000 yen in a lump sum to Nova before it collapsed, she paid Geos in a smaller installment.

Click here for the full Daily Yomiuri article.

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