Lets assume CCI goes BK prior to years end (most logical outcome). What will happen to the students who are one or two semesters from graduating? I personally find it hard to believe that if the school closes, the DOE will allow all of those students to walk away from their debt under normal guidelines. Could Everest or Wyotech still go through a teach out phase? Or are the students faced with trying to transfer elsewhere at that point?
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They will go back to meth and smokin' crack rock!
It's amazing what happens when regulators come knocking on the door asking for help from a school in the area...
Even if the accreditation is the same, they still might not let students transfer. Also, not ALL CCI schools are ACICS.
811, true, but ITT doesn't want CCI students. And it doesn't want transfers at all. All for profits want to make money. If they all start transferring students, they won't make as much money. It's not like it is at non profit schools, where you can transfer all or some credits. I've worked at both schools. The curriculum at Everest is far inferior to ITT's curriculum. Most of my Everest students could not handle ITT's curriculum. It's very on par with what a 'real' college is. Everest is not. Also, ITT doesn't take students who can't read and write at a high school level.
ITT Tech has the same accreditation as CCI
797, there is NO credit. The only money we have is from tuition. Hence the textbook delays (can't pay vendors) and toner saving. It only gets worse from here.
While many of the expenses were non-cash, the level of cash and credit has been going down fast!
CCI's cost structure has exceeded revenue for many quarters. Recently, it seems that attrition has increased while new admissions have decreased, further reducing cash flow. The largest cost categories for most schools are real estate/physical plant and headcount. We don't own much real estate, so guess where the biggest cuts need to come...........The DOE is very specfic abput what the student loan funds can and cannot be used for. It seems very likely that CCI will simply run out of operatiing capital very soon, forcing consolidations and closures - unless campus sales are completed.
For profit schools don't really let you transfer. They're in the business to make money, so it's not on their best interest to. In addition, the curriculum at other for profit schools is much more vigorous than Everest. Everest's curriculum is not really at college level. No offense. And CCI brand is badly damaged. So, transferring might be a very slim option, at best. However, any fir profit school will welcome you and all the FA you can bring if you are willing to start over. But students will have to take a pre test at every other school and prove they can read and write at a high school graduate level.
If CCI files for bankruptcy, all FA funding stops immediately. That means they will likely close their doors on the day they file. (That's my understanding from research I've done, but I could be wrong.) Should the close, they will likely teach out some schools. But probably not for longer than a term or two. Funding will be limited to the amount of students left. But you also have to understand that if CCI sells any schools or brands, that does not mean students can automatically transfer. If it's not the same accreditation, they can't transfer. (For instance, pretty much only for profits use ACICS. So if a non profit not using ACICS buys school, students may not be able to transfer.) most for profit schools DON'T allow transfers. They want all the money they can get. So, they make students start all over. I've had students try to transfer to ITT in the past and couldn't. Personally, I think it's foolish of any new student to enroll in a CCI school at this point. Hopefully students will be able to graduate. But with an already low retention rate, keeping teach out schools open will be an uphill battle, at best.
The forgiveness rules are very narrow. But it's up to the student to contact DOE for that information. CCI students won't. They can't even go to class without being reminded.
https://studentaid.ed.gov/about/announcements/corinthian
https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/closed-school