Are there any schools there? I havent really heard this city mentioned much.
That's because though it is a main city and business centre it's not a very interesting place from a tourist's point of view - I'd think you'd be better off in, say, Cuenca.

I personally think Guayaquil is underestimated by a lot of travellers. It has built up an image as a dangerous and unpleasant place to be.
I was told that there are a few schools teaching Spanish in Guayaquil, but can't give you any names. Try at the Dreamkapture Hostel. They seem to have all the ins and outs on tourism in Guayaquil and are always willing to help.
Don't let anybody discourage you to do something that is off the beaten track! Try something new and get what travelling is all about. Great experiences and some good stories to take home.

I have not been to Guauaquil, but I have only heard bad things about the city. Eveyone I have spoke to told me not to bother going there. I am taking classes in Quito (at Vida Verde), and there are a LOT of good schools to choose from. It is a good place if you are looking for a big city. Otherwise, I would choose a smaller Ecuadorian town. Or you can always choose a school that takes week long excursions to the jungle, coast, etc.

Well, let's think about a few places in our own countries that most people avoid simply because everyone says to not bother going there. Some of those places are best avoided for very good reasons; others would be excellent places for a foreign traveler to visit precisely they would be the only one there, though they might not be good places to put on another (overused) '1000 Places to See Before You Die' list. Guayaquil sounds to me to be more of a dead zone on tourist maps not because it is dangerous, but becauseit is perceived to be boring.
In a bar I met some women from Guayaquil not too long ago. They were anything but boring.
I used to live in a section of Guadalajara where tourists feared to tread, for good reason. I never had any problems, though, and I had the time of my life.
Maybe you would learn a lot more Spanish in Guayaquil than you ever would in a place with lots of tourists, because in Guayaquil you won't have so many tourists to fall back on if you feel like lapsing into English. The problem with tourist places is that it is so easy to not speak the native language if you have even the slightest inclination not to, whereas in off-the-radar places you have no choice.