How is Zenith still in business? I'm surprised that ECMC hasn't unloaded the schools yet.
http://collegemeltdown.blogspot.com/
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Unfortunately no, it's just something I heard. Some of us were talking about the ACCSC making Zenith jump through hoops for accreditation and a person higher up said there won't be a problem if push comes to shove, it just takes the right amount of influence.
@NkjSQeG-4jmx: if true, that's a major scandal. Do you have any evidence?
Doesn't matter to ECMC because all the money they're losing on Zenith Education Group was given to them by the DOE. It's all tax payer dollars that are being wasted on a private company where the executives and board members are paid millions in salaries and millions more in bonuses. I heard through the grapevine that Zenith offered ACCSC close to 10 million for accreditation for the Everest schools.
I was told that ECMC has lost several hundred million on Zenith but has made several billion on student loan collections.
ECMC's hole money-making operation has come from other guarantee agency student loan portfolios given to ECMC by the department of education. ECMC management has bragged about the deal they struck with DOE. I've been told They have made over $2b in collections on these portfolios hammering away on former students that attended Corinthian schools and other schools just like them.
Because ECMC is making millions off the back end of Zenith Education Group. It's like the repo man selling used cars, you get paid in full from the government/bank then when they default on their payments you get paid by the government/bank to collect the money/repo the car. All for a mere 24 million dollar investment.