That is the worrying bit! But equally if I am a prospective customer and they are in need of my business they may quote me a 20k deal at 18k paid up front.
I am sure they will not turn me away if I insist on that discount on condition the money is held in escrow or paid in block payments.
If they don't have your money upfront, than why give you an upfront discount? What's in it for them? It would seem that the only one benefiting is you (and the escrow company).
Anyway, I've never heard of any flight school using an escrow account. If this was your condition for a discount, then you are unlikely to get the discount anywhere, and would be back for paying as you go.
Bose-x's point is well made though. If the rumour is in relation to a possible historical situation, but is in no way connected with the current position, then why air it at all? The trouble with bankruptcy rumours is that they have a habit of being self fulfilling. A perfectly healthy and well run company can see a big drop off in new customers if false rumours are spread about it.
dp
ps. never pay up front, not just because of possible bankruptcy, but for other reasons like IO540 described.