ECMC promised $billions in student loan portfolios from department of education in exchange for buying crap Corinthian schools. Shut down ECMC and save taxpayers billions.
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@KuUv84G-ewzo, is there any documentation about Corinthian Colleges potentially being bought out in Spring 2014? Do you really think "deep pockets" was ECMC? ECMC bought Corinthian Colleges for a small amount, $14M-19M? And the CEO thought it was a bad idea at first.
@KuUv84G-ewzo, do you think there is anyone who could reveal who "deep pockets" was?
The DOE was trying to put something together in the spring of 2014. Jack Massamino told us on a conference call in October of 2014 that the company looking at buying the schools had VERY deep pockets and had the blessings of the DOE. He also said he was approached in the spring of 2014 about selling the schools but never mentioned the name of the company.
How long will ECMC continue to subsidize Zenith for its losses? * told me that ECMC really thought they could turn Zenith around. Was he lying? I really thought * was being truthful, but not altogether forthcoming. What did the Department of Education say (or not say) to convince ECMC that buying the schools was a good deal? Was there really a quid pro quo, or did ECMC really see some value in the Everest and Wyotech schools? If there was a quid pro quo, was it in writing or was it a verbal agreement?
Camden, WyoTech non-payment rates are in the 70s also. The only thing keeping them going are the veterans.
@KuUv84G-1jpg, I agree that the $250M infusion to Zenith was a big chunk of money on top of what already had been spent.
Are you saying that ECMC didn't get what ED promised in student loan portfolios in exchange for keeping the Everest and Wyotech campuses open?
Are you saying that ED promised with actual NUMBERS, not just empty words?
It sounds like if ECMC got swindled by ED, ECMC executives can't do anything, for fear that they may be prosecuted or lose their contracts.
If you have the numbers, send me an anonymous email. Or if you know who the unnamed party of the $500M or so in Genesis Loans was, send that to me if you can use that as leverage.
Wow, Camden Kid. Those rates are worse than I could have imagined. Why are these schools still open?
Regarding the ECMC portfolios, most in industry believe there is a quid pro quo arrangement with ED. ECMC will receive FFELP portfolios (that should have been recalled by ED to save taxpayers billions of dollars) in exchange for ECMC acquiring bad schools from Corinthian.
Bad deal for Corinthian students, even worse deal for taxpayers.
The student loan non-repayment rates are about as bad as it can get. This data from Pro Publica. The non-repayment rates for Pell eligible students is slightly worse.
Colorado Springs (CO) 66.5%
Thornton (CO) 70.2%
San Antonio (TX) 80.2%
Tacoma (WA) 57%
Norcross (GA) 71.4%
Chesapeake (VA) 79%
Woodbridge (VA) 42.5%
Austin (TX) 75.4%
Houston-Hobby (TX) 80.2%
Houston-Bissonnet (TX) 68.7%
Fort Worth (TX) 67.4%
Arlington (TX) 77.1%
Henderson (NV) 75.2%
South Plainfield (NJ) 75.4% (error?)
Southfield (MI) 75.4% (error?)
Atlanta-West (GA) 65.3%
Tampa (FL) 72.5%
Orange Park (FL) 72.5%
I don't understand this. What portfolios are ECMC getting from ED?