17702, Jack made close to 3,100,000.00 last year, LOL.
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Heald is the only viable brand, so the negotiations are probably twofold: 1) Get a buyer for Heald. I have heard Clifford's investment group, Liberty, and Unitek mentioned. There may be another private equity group. Part of this is 2) making sure Heald is "free" of CCI entirely. However, DOE may be working to get Everest and Wyotech students transferred to Heald for completion. CCI is then dismantled in bankruptcy.
This plan also gives Heald even more value because of the enrollment bump.
Billion dollar estimate is worst case scenario. It may end up being 5-700MM which still is a shame! Does anyone know how much net worth Jack, Bob, Bill, and Beth are valued at collectively? Let's rally around the family and get it back!
Joyus- You don't know how this works. If you are another school and suddenly there is a large group of students and ED tells you they will approve a completion plan, what are you going to do?
I don't believe many Everest students will finish their degrees at other schools because I've heard very few school accept Everest credits. Other schools are telling these students they have to start over, which means a large majority of them will just quit when they realize most of their "credits" are worthless. But I agree with you on your other point, most of these loans would not have been paid back anyway. These students were going to default regardless.
And seriously, with what we know about CCi's default rates, they wouldn't have been paid back anyway. One of the reasons the company is in doo doo is that they started aggressively putting dropped/graduated students on every forbearance and deferment that they could. They still mostly default, just after the window that's used for tracking school's performance. We already know this.
My guess is that ED knows that most students, especially those that are almost done with their programs, will simply complete at another school, and thus no discharge. This billions of discharged debt is just smoke and mirrors. The level of discharge will likely be much lower than these billion dollar estimates.
CCI knows if they go down, then ED will need to make other regulations and billions of dollars will be spent on loan discharge. Don't you people know anything about business tactics? It's a tennis match!
Why must CCi negotiate a special deal anyway?