Michael,
Until proper regulation is put in place to actually properly regulate flight schools, I'm afraid that the only protection a flight school student has it to pay as you fly.
As we found out from the owner of Jet University, strip clubs are more regulated than flight schools.
This industry needs proper state regulation that insures that the business is properly capitalized and has proper insurance as well as a trust account to protect the student's money.
Jet University did not have insurance and was not properly capitalized. No one (state or federal) had ever looked at their financal statements.
The problem goes much deeper than Jet University. Flight school students have lost over 100 million dollars in Florida over the past 8 years with flight schools that have not delivered what the students have paid for.
I would hope that legitimate flight schools would support and encourage such regulation to improve the health of the flight school industry and keep the bad guys out of the industry. These bad guys are stealing your potential students and not delivering the services paid for. This does not benefit your flight school, the industry or the student.