"However, since the July 23 letter, the Company has received two disbursements of Title IV funds under the Operating Agreement totaling approximately $42 million, with the most recent disbursement received on August 6, 2014." So the most recent disbursement was received just in time for payday. Also I wonder about the $30 million dollar fund for student refunds; was it fully funded? With a lower student population, the level of ED funding, however, is going down, since ED only pays for students in classes. This is essentially outlined for teach-out campuses: "During any teach-out process, the Company’s revenue would decline more rapidly than operating expenses and the Company would expect to incur operating losses at those campuses." Is the 10% reduction in pay for certain workers sufficient?
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They won't teach out the schools. Too expensive. They'll combine as much as possible and maybe keep a couple open. It'll be too much overhead and with retention at regular schools terrible, they're looking at serious funding issues to stay open. But don't kid yourself about how it'll run if they do keep doors open. It will be the tiniest skeleton crew - a dean or PD (who's been given a bonus to stay on but will mostly be unavailable and not on campus), whatever instructors who are teaching classes, maybe a PT receptionist. Hopefully some security. Rooms will be emptied of furniture, except the few they are using. Stuff breaks and it won't get fixed. Supplies run out and they don't get replaced. It's depressing. I've been through one.