I haven't heard of any instructors getting laid off here in Phoenix. Here, they got rid of 14 last I heard. I've got plenty of students. So far it looks like a cost cutting measure, which is understandable in these tough times.
They didnt let instructors go, they gave them an option. For the few instructors that are salary, were informed that they could not get salary any longer. They have the choice to stay and work per hour, or leave. Some chose to leave, some chose to stay and feel it out.
Wow Pan Am too! I just found out that ATA closed its doors. (Word Doesn't spread too quickly when you're out here in Hawaii!) I got friends at both ATA and PanAm what the heck is going on in the mainland? That sucks!
No student should ever let the school have that much money. Giving them 10k to 15k at a time is one thing, especially if you are flying in a twin. But 60k, no way. If a school offers you a discount if you pay in full, run the other way. It is reasonable to give discounts if you have a certain amount in your account, but this should be a few thousand at most.