The only way to not teach out all of their schools is to provide the students with full refunds, and that is not happening. So it cannot happen that way, since CCi does not have the cash to close the smaller schools. Beyond that, rent payments would like be due until the end of the contract. CCi has a difficult enough time paying rent on HQ, so I cannot imagine CCi paying rent on empty space, considering there is no cash.
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As long as the school is not bankrupt, it must pay back the loans if it closes a school. ED does not simple "forgive" the loans when the school is still in business. If CCi cannot pay the loans back, then it goes bankrupt, or takes a different action, such as actually teaching out the location.
ED isn't responsible for any schools. I don't know what that means. They pay loans to students. DE has nothing to do with running the schools in any direct way as far as day to day operations. That's not their function. Maybe I'm wrong. DE will probably be next on the potential buyer list!!
Anonymous31903- Yes, but teach-outs are expensive, and CCi has no cash.
Anonymous31902- If CCi cannot do it, then the only other option is bankruptcy. ED is not going to pay for schools that CCi doesn't want.
Everyone thinks I'm wrong. But I'm not. Even if they go to teach out, they'll keep less than 10 employees (mostly PT adjuncts) at each school. So, you're all losing your jobs either way. What do I know? I've just been through the experience once before! Have a great weekend! Good luck on your job search once CCI closes! I've got a new job offer. There's no severance either. But aim wrong about that too.
891, you think CCI can give refunds? You're really uneducated about failing businesses. Operating agreement. That's adorable. They've got ECMC 'looking' at schools to call it a 'good faith effort.' They commit FA fraud by not dropping students long after they stopped coming. They claim 80% retention rates. They fake job placement rates. But this is where they stay morally competent? That's totes adorbs!!
Anonymous31899- That's only for bankrupt schools, otherwise ED withholds the refunds from future Title IV payments.
"if there are 5 campuses in one metro area, they will keep one of them open."
I'm in an area like that, but there is no way to transfer students between the schools without state, accreditation body approval, and Department of Ed approval. The accreditation bodies are different, the programs are different enough that credits generally don't transfer, at least not all credits...
895, DE forgives the loans.
Teach out doesn't mean all schools stay open. It means they make arrangements for students to finish their programs. If other for profits have the program, they might farm them out to them (it's FA most for profits won't turn down.) also, if there are 5 campuses in one metro area, they will keep one of them open.
CCi has does not hold any loans, so the only way for CCi to "forgive the loans" is to pay the lender the cash.
The damages from the lease can be mitigated by subleasing, but that's not to suggest that CCi can afford to pay for long.
I was involved in a teach out at a different school. After one term, they closed and sent everyone to a campus more than an hour away. They removed everything and locked the doors. They were 18 months into a 10 year lease. If they have money, how will they stay open? They can't. But you know, the 10% payout and being sued for rent at headquarters is probably not at all an indication of CCI's financial health. I'm probably wrong. Because sinking companies just stay open and keep running.
Looks like you need to read the operating agreement, where "Full refund" of all "direct costs" is carefully outlined.
Students have to do the legwork on their own for refunds. 99% of cci students will NOT do that.
They do NOT have to give refunds. They have to forgive loans. Big difference. And maybe not if they file bankruptcy.
They just did it, moron. They closed a few schools and went to teach out with others. Everest in Milwaukee closed 2 years ago without a teach out. They will not keep all campuses open for teach out. And in places where they have multiple schools in big cities, they'll keep one open. I've been through this before. This is how it works.