http://www.edcentral.org/ecmc-bankruptcy/
"According to multiple sources, ECMC is asking Congress to make a special change to the rules that govern a college’s eligibility for federal student aid once it declares bankruptcy. Under current law, a bankrupt college is no longer considered to be an institution of higher education, a change that immediately triggers its loss of federal student aid. While we do not know exactly why ECMC is pursuing this exemption for Corinthian, it presumably would help the sale still go through if Corinthian cannot stay solvent until the deal closes. It also might stop creditors from going after Corinthian and further insulate ECMC from the troubled for-profit college chain.......
Seeing ECMC pursue such a special loophole is particularly rich because it has a contract with the Department of Education to handle some federal student loans when they are in bankruptcy proceedings. As detailed earlier this year by The New York Times, ECMC has been known to aggressively pursue borrowers to the point that it has been accused of wasting legal resources and abusing the bankruptcy process."