What did ECMC get wrong in their 2014 deal with the US Department of Education? And are they done with all ownership obligations in February 2017 (see bottom of page 4)? If they are thinking about bailing, why did the ECMC Foundation pour $250M in additional money in? Does anyone know where all that money is going?
http://www2.ed.gov/documents/press-releases/term-sheet-sale-corinthian-campuses.pdf
The 250 million wasn't given directly to Zenith. It has been made available mostly for grants to help cover a portion of the difference between tuition costs and what the student can borrow.
I would love to hear from some current instructors at Everest or WyoTech. Is it any better? With enrollment numbers so low and apparently placement numbers no better, why are you still there? Don't go down with the ship.
Camden, I know the first RIF in April 2015 came from the top. There were a few positions eliminated and departments were picked for streamlining but most of the people chosen to be let go was done at the top. It seemed like salaries had nothing to do with who were chosen. I am almost certain that the instructors let go at WyoTech were not picked at campus level because some of the best were let go.
Since most of the instructors I knew that were let go, mainly by just not giving them classes, were conservative men. Many of the Asst Deans are very far left liberal females who kept the liberal women instructors on and got rid of the male conservative instructors. They did it for purely personal reasons, because they could. Some of the disciplines hardly have any instructors that have done the job, mostly liberal academics with loosely related fields of study. Like a Paralegal or liberal defense attorney teaching Criminal Justice instead of a cop just for an example.
@KICdpX4-4zny, do you think it was simply that they pulled names from a hat when they fired instructors? Or do you think they were looking at pay? I'll ask my sources, but I'd like to get an opinion on this board about how they think instructors were picked for RIFs.
Zenith sealed their fate with the huge RIF 90 days after taking over the schools. Yes, a reduction in force was needed, but they terminated some of the best people they had. It's like they pulled names from a hat. When I watched some of the best and dedicated instructors get let go and some of the worst being kept on it didn't make sense. I know the person responsible for the RIF was terminated a few months later but the damage had already been done. In December 2014 CCi had around 72,000 students. Today there are less than 10,000 students. Last year at this time there were around 15,000 students, so the numbers continue to slide. I think the 250 million ECMC put up was to get Zenith past the hold period. It wasn't given to Zenith, it was made available to Zenith if needed.
@KICdpX4-3iny, I believe you are right about Zenith's past and present leadership.
This is a lose-lose-lose situation for students (who end up in debt peonage), the federal government (having to eat bad student loans), and ECMC (having to put $250M in a failing proposition).
If the "hold" obligation expires in February, what happens to Everest and Wyotech and the students? Wyotech may have some value, but can ECMC really unload the Everest schools? How many students are left, 6000?
What they got wrong is that the schools were in worse shape than anyone could have known. I still work there. Our former CEO was an inspired leader. He's gone. There's really no inspiration left at the company. We are led by a committee who spend hours in meetings on things that should be decided in about 2 minutes. The guy running Zenith has said he'll only do it for a year. I think that tells you what happens next. It's too bad. The country needs vocational training options but it won't happen with the right leadership. We dont have it here anymore.
They are still enrolling students. No word of them closing allthe schools, but may be looking into selling them.
Can you tell if they have stopped enrolling students? They owe it to students to stop enrolling if they are closing shop.
ECMC could not sell any of the schools during the "Hold" period which is two years from the date of sale. The "Hold" period ends February 2017 and ECMC may after that sell any or all of the remaining schools. I have heard they have secretly been searching for buyers of WyoTech and possibly a few of the Everest schools.
Originally all Zenith Education campuses were to have an independent budget last starting June 2016 but was extended to January 2017. What is meant by that is each campus would be required to be financially sound. If your campus was not bringing in enough revenue to pay it's own bills it would be taught out and closed. Now ECMC/Zenith Education is getting heat from the DOE over student loan default rates at most all of the schools. Things still aren't looking too good for Zenith Education's future.
No...do you??? It is surely not going to the RUNDOWN campus' of Everest.