Thread regarding Education Management Corporation layoffs

Even The Economist is puzzeled about the acquisition....


The game of for-profit whack-a-mole by the government started with GI money after WWII and continues to this day. Nothing new but nicely summarized in the article.

Last paragraph: "Surviving for-profit firms are already shifting tactics: some are focusing on graduate education, where accusations of predatory practice have been less common. For-profit colleges now award nearly 10% of masters degrees in America—and a whopping 40% of business doctorates. Others are trying to convert themselves into non-profits. Purdue University, a well-regarded public college in Indiana, has bought the for-profit Kaplan University in the hope of launching an online school.

Some acquisitions are more baffling, though.

The Dream Centre Foundation, a small non-profit associated with the Pentecostal church, recently bought schools owned by the Education Management Corporation, which saw the value of its stock fall by 99% from its peak and its bonds rated as junk, after a parade of mis-selling scandals and investigations by federal and state governments. Critics describe such moves as a rebranding exercise designed to dodge regulation. If the past is a guide, those fears are likely to go unheeded—at least until the next scandal."

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The whole culture needs to change so leadership tossed out is the only way to do that!

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Did you say "sleazy money?"

Laudy G. There's got to be an extremely hot place in hell for all charletan evangeloids in this assembly of Satan's spawn.

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The non-profit status allows them to go after 100% FAFSA money rather than just 90% and then hustle Veterans for the remaining 10%. Now gainful employment no longer applies as well. Nor do they need to worry so much about accreditation.

Add that all together = easy money.

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EDMC is still capable of generating millions of dollars in revenue even in its dilapidated state. Given that the asking price was so small and assuming that money won't be channeled back into school development, then all the backers should make a tidy profit in the short term. It all begs the question; is this guise of "non profit" part of the end game as has been suggested in various articles?

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The question is, how big is the cut of the cash flow generated from tuition that Najafi is going to get?

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Michael Clifford is always at least one step ahead of the investigators...


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Lil Elvis! Nice!

I think the Economist knows exactly what is going on. Funny interview of John Grisham and his new book 'Rooster Bar' btw. They know. They have to raise questions for the rest of us to ponder. 'The rest of us' being people who are looking at either putting money into education or pulling it out.

Zenith did what a lot of people wanted them to do - take over, slowly wind down operations, avoid having to pay out beaucoup $$ to ticked off students, and letting the press die down about the whole mess while milking the dying cow for a last bit of milk. MOOOOoooo x0(

The prayer warriors of the Scheme Center have been looking at buying schools for a while and then selling them at a profit: />

That link goes to a Frontline documentary called College 2010 Inc. Watch it. Mr. Clifford has a starring role.

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Face it. The jig is up. Was it ever really about education? The emperor has no clothes and Scheme Center hiding behind their true felonious intentions is like Roy Moore saying he never had short eyes.

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So we’re just helping them milk it for a short while, then they discard us.

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The Dream Center will be just like Zenith Education Group, but tge schools for peanuts, drain them dry then close them.

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The Economist should quit whacking its own mole (frankly I call mine "Lil Elvis") and stop overthinking the situation:


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