Forgive my ignorance, but isn't Title IV funds for students, NOT to pay the payroll of employees or outstanding debt?
No wonder Federal Funds are so f***ed up!
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13312- Two things: 1. ED said that students and taxpayers need to be protected right away and that the falsification of documents and poor performance required the action. 2. On that earnings call some investor actually asked for a 2015 budget! I was laughing as I was listening to that. Jack said 2015 forecast would be provided in August. Jack ended the call something like, "See you all in August." Now I must admit I didn't see this coming, but asking for a 2015 budget when they cannot pay today's bills? lol
Don't be stupid. One billion dollars is simply a cheap price to pay NOW than the ultimate 10 billion of future defaults CCI was going to produce. This also sends a message to the rest of the clowns: clean up your act or suffer the same fate.
For anyone who listened to the last earnings call they essentially admitted that the company was done. They were looking to sell what schools they could (Heald, ECP and possibly Wyotech) so those students and employees could continue and the others would be taught out. I still find it hard to believe that the government is looking at a potential billion dollar write-off of T4 Funds when they could have an orderly teach-out and sale. I think a deal will be struck, Cci will essentially be put on a death watch but that they will suspend the 21-days for 90 days or so with strict over site of the shutdown and sale operations. This will give local campuses the opportunity to arrange for teach-outs and allow students to graduate. A lot of people will still lose their jobs but at least they will have a little warning
13305...only for another week
That's why admissions is allowed to circumvent the rules and enroll third graders.
You have to have students in order to receive T4 Funds. Their next excuse for not paying you is that you didn't work hard enough to bring enough students in to pay you.
As long as CCi is able to beg, borrow, steal, whatever, cash, they will continue. The day that stops is when they are done. That day appears to have come.
Ok smart ass, so the company as a whole is cash poor....at that point what the hell does it matter? Unless a private entity ponies up cash because the banks told them to pound sand, they are done!
As of March 31, CCi had about $28M in cash, but of that $28M about $95M was "prepaid tuition." Yes, that's right, they have far more in prepayments than cash.
And by the way, students don't pay on Title IV funds until they graduate and after the grace period....what the student pays is the balance that federal funds don't cover, that's called a TUITION balance....unless of course they drop
Because you still have to pay employees and bills. No money=no business. Christ, did I actually answer an adult with this.
So students go to class for free for 21 days then the DOE will release the monies. Ok again I get that, you're not answering the question...it's a slight delay in process, why in the hell does that warrant closing the doors??!!!!
The funds to go the tuition. Tuition will be paid 21 days later.
And in fact, most students must make monthly payments because the Title IV funds simply are not enough.
I get what it's for, what I don't understand is if the DOE withholds funds (for the students!!) why does that affect payroll and why shut the place down? Does CCi depend on those funds for frivolous usage? When in fact it belongs to students!!!
Students don't see one dime of that money, but they do get books and are allowed to go to class.
That is how students pay the bulk of their tuition