"the California schools are being converted to non-profit" Is this actually underway or just some pipe dream? Sounds like another scammy move to swindle more students out of money with poor return on the dollar.
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ACICS has always been the dirty little secret these for-profits have relied on to come across as legitimate. This is how they got away with telling students they were accredited. In reality, it was and is a scam propped up by the for-profits. THAT is why students have a rude awaking when they try to transfer to REAL colleges and most of their classes will not transfer.
Was I right about everything else?
NOPE! The non- profit conversion is a no go! ACICS is about to be bounced. DOE is under scrutiny. Attorney Generals and CFPB are under your bed!
I can say for sure that the California schools are being converted to non-profit. I don't know about the rest. There are lay offs coming too. We should know by Friday or Monday. Admissions is number one priority to shave and the rest of the staff there's no where else to cut. Those cuts already took place. Admissions were the last to be laid off due to the fact that EDMC needed students to continue to cover their losses until they came up with a definite plan.
There was a legitimate plan for them to convert the schools to not for profit, so there's that. Maybe they'll try to turn another trick and dive in that rabbit hole! In all seriousness though, there's a legitimate plan for that.
Like closing would be the right thing.
They cannot declare any sort of bankruptcy and get Federal student aid funds, so a work around that works out to the same thing would make sense?
Yeah, that's exactly what I'm thinking. Are they considering suicide? Student populations are way down at all locations. They've gotten about as much money as they're going to get out of the place. A class action lawsuit from the remaining students wouldn't hurt much . Bankruptcy sorta makes sense at this point. And even if they were sued, the company would be protected from lawsuits under Chapter 11. And what would happen to severance payouts to current full timers. Would the company still be obligated? Anybody know?
We'll see pretty soon.
Time to purchase Edna stock!!!
No, it can't be unless they're going for full suicide mission. Which I'm not ruling out but it would be the drastic approach.
There's not enough funding coming from other sources to keep the lights on. It's pretty much all federal funds. There have been media articles written about that possibility and all pretty much agree that all doors would shut immediately if they declared bankruptcy.
Maybe that's the plan. Declare bankruptcy, cut VA funding, cut back the student population, then shut the place down. Kinda makes sense to me. Too wacky a scenario? We'll have to wait and see.
Any thoughts?
Yes it does sound like a bankruptcy restructuring plan but I can see a reason why they would choose to go this route vs. declaring Chap 11: Federal Funds. The second they call bankruptcy, they lose access to federal funds including student loans and VA.
Piss off!!! @ss munch!
Quite frankly, I am tired of reading all the bad language and poor grammar in some of these posts....and this is supposed to be an institution of higher learning? No wonder it is failing!
Sorry for calling bullshit on stuff that doesn't make sense. 90% of what is posted on here is bullshit.
So who do I inquire to buy some computers and such?
Hang around and find out since you've got it all figured out.
Original poster was really vague and either not fully informed or keeping back details. It's much more complicated than anything just being sold.
The information should come out shortly. It also won't be "secret" for very long. It's a massive event/chnage and will need to be presented to campuses very soon.
Man, it's amazing they're actually sticking to their original plan. I can assume 2 reasons why they laid off ~600 people last week, but are still paying until the end of June: 1) the plan had leaks the size of the titanic and wanted to move before the workforce did, 2) avoid the press - saying that you only officially laid off 200 or so sounds much better when you do the same thing in two months but get to hide the numbers in your back pocket.
I can't say that it will absolutely happen at the end of the fiscal, or the start of the new, but the plan is to bring ALL centralized positions back onto campus and then sell the schools off - I said this a week or so ago.
If they haven't sold them all yet, they'll try to package the entire brand together and when that doesn't work, they'll sell off individual schools. Also, EDMC won't go away in the next calendar year as people will buy up the campuses because they were once great. However, they will skeleton crew the sh!t out of it until the deal is done. Also, don't discount the option to just close the non sellers and cut their losses.
EDMC pays well, I get it. But understand the money you're current receiving is due to misleading tactics of the larger whole. My best advice is to work out a new budget and bring your swim suit, this log-jam ride isn't over yet.
Apollo Group. Buy stocks now!!!!!
I really won't believe any of this crap until it happens- they wouldn't be closing EDMC as of June 30th but have layoffs a month before hand
Will they restructure existing salaries? Or start new people lower?
Are they selling the schools in groups, all South, all AI etc?
Is this true? When will it be announced?
Thanks for sharing! Can you share more about who the new owners are? So, is EDMC selling each school to different buyers for each university? Are leadership positions, i.e., chairs going away? Are oncampus schools moving to online?
I guess NAU
All salaries will start at $35,000. Old salaries will be gone