Interesting read.
https://www.republicreport.org/2018/mysterious-deal-take-devry-university-private/
Cogswell has about 600 students. Keller and DeVry have a combined 30,000 students. So that seemed weird.
Under the agreement, Adtalem has committed to provide Cogswell with “a minimum working capital balance of $7.5 million, subject to increase up to $20.1 million,” and in turn Adtalem would be paid as much as $20 million over 10 years if DeVry University reached certain cash flow benchmarks.
But Cogswell has the power to back out of the deal if enrollment at DeVry University drops below about 20,050 in May 2018, or if former DeVry students have filed more than 2,250 claims with the U.S. Department of Education seeking loan forgiveness based on school misconduct. Some 1,905 such complaints were pending against Adtalem schools late last year, but new Department of Education data obtained under the Freedom of Information Act by the Century Foundation and provided to me today indicate that DeVry University alone now has at least 7860 borrower defense claims against it, well past the threshold that would allow Cogswell to void the agreement.
But there are other issues beyond whether Cogswell might back out, issues related to protection of students and taxpayers going forward.