Our profit margins are very much the same here in Australia, even with our good weather! It must be so much harder to cover your fixed costs over there. It would be nice to make the sort of margins as other businesses such as retailing, but the competition here is too fierce, so we all just scrape by.
Yet we manage to maintain cash flow without using our students as "banks" for interest free loans, and I would suggest that any school that insists on it may well have a cash flow problem already, buyer beware. Especailly if the MD wants your money up front, but is driving an expensive car.
I really feel for you folks that lost your money, and your jobs.