INSIDEARM.COM: Debt Collector Closes on Acquisition of For-Profit College Network, with Restrictions
Career College Central Summary:
Student loan debt collector and guarantor ECMC Group Tuesday completed its acquisition of much of the campus network formerly owned by for-profit operator Corinthian Colleges. The controversial deal, announced late last year, will go forward with a number of concessions and restrictions announced today by the CFPB.
Corinthian is the embattled former operator of more than 100 for-profit college campuses in the U.S. and Canada. Federal and state regulators and investigators launched numerous actions against the company over its lending, funding, and debt collection practices. In July, the company and the Department of Education (ED) agreed on a plan that would shutter a dozen Corinthian campuses and sell the remainder to third parties.
ECMC stepped in and agreed to acquire 56 Everest and WyoTech campuses from Corinthian Colleges Inc. and transition them from for-profit to nonprofit status. The total purchase price is $24 million.
But Congressional leaders and regulators were very concerned with the plan and sought assurances that ECMC would restructure the business as it promised.
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