I was not there for this plan, but did look into it quite a bit from the outside to help others make decisions. I can't quite remember why it got this name (Something about tearing down walls, or Faith to face the giants).
In theory, this was a great idea for both marketing and scholastic achievement. Students received the first two years free. Well, not quite. Students had to pay for books and incidentals and a couple of hefty fees. For families that could afford the money up front, and supply the student with cash for incidentals, it would be awesome. Colleges in general have a high drop out rate up to the Junior year. Statistically, if someone can make it to the junior year, they have a much higher graduation rate. The goal was to help kids decide to graduate. In theory, they would show up and have extra time to work on academics, get adjusted to college life and increase their walk with God. The most difficult part of HAC is schedule, not academics. In theory, this program would allow them to adjust to schedule more easily while having opportunity to spend real hours studying. Students would only have to pay for their Junior and Senior year. The program was never intended for dropouts or people who were thinking about maybe going into ministry. It was intended to help those who had a real desire to be in the ministry.
Problems:
1. Freshman college students don't study. Especially when most of them have been manipulated into attendance. Compound this with the common lack of academic excellence already prevalent in the faculty and staff, there could not possibly be given enough work for the students to do to keep them busy.
2. Once the student hit his junior year, he would have to pay a higher rate than most other Bible colleges. I don't remember the numbers, but I do recall advising people that it would be difficult to get a job that would pay all of the bill in their junior year without any work experience. Again, the student would have to have some help from home. Probably by his senior year, he would be able to pay, if job worked out well.
3. Funding. We guessed that JS was working some financial guru plan (Maybe attempting to run a take off of a ponzi scheme for tuition funding per the advice of his good buddy TK?). It seemed that after the initial investment, the current Jr and Sr classes would be paying for alot of the upcoming Fresh and Soph classes. Knowing class ratios, this seemed to be doomed from the beginning.
IF someone signed up for this, they knew full well that they would be responsible for the bill if they dropped out - and it would be hefty. Yes, they are morally and legally obligated to the college to pay. I know that in years past, FBCH has struggled with what to do with those bills. LOTS of unpaid bills out there. The best solution I heard had to do with selling the debt to a collection agency. Let the agency fight for the money and pursue court or credit hits if they desire. But, FBCH just didn't want to accept the notion that so many Christians would be so dishonest as to not pay.