Forty-six organizations signed a letter on Wednesday expressing reservations about the proposed sale of 56 Corinthian Colleges campuses to the nonprofit ECMC Group.
Associations including the American Association of State Colleges and Universities, the Institute for College Access and Success, and the Service Employees International Union all signed the letter, which demands that the new system of colleges—the largest nonprofit, career-college system in the country—meet five conditions.
The letter raises a number of concerns, including reports that ECMC, which has a student-loan-servicing arm, has run roughshod over borrowers; that the proposed terms of the sale inadequately serve the campuses’ current students; and that ECMC’s plan to reduce tuition at the campuses by 20 percent doesn’t go far enough.
“We urge you to stand up for students by insisting on sale terms that provide adequate student relief and protections,” reads the letter, which is addressed to Education Secretary Arne Duncan, Attorney General Eric Holder Jr., and Richard Cordray, director of the Consumer Financial Protection Bureau.
The sale, announced in November, is a major step in the dismantling of Corinthian Colleges, which was effectively put out of business by the Education Department this past summer, when the department imposed stricter financial oversight of the for-profit company, which then revealed it didn’t have enough cash to stay open.