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Corinthian Colleges Inc. Message Board

  • archarch_60477 archarch_60477 Feb 26, 2014 10:32 AM Flag

    Look what happened to ESI when they cleaned up their investigation, stock went from 7 to 40

     

    patience i guess

    Sentiment: Strong Buy

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    • ITT (ESI) received a lawsuit from the CFB today regarding "tuition gap funding." I don't thin COCO has this funding scheme, or else, it would be named in the lawsuit or a separate lawsuit. I believe COCO problem is graduation and placement practice. If COCO comes out of this with minimal damage, iPPS will rise greatly. They already engaged in cost cutting by laying off excess human capacity. Should refelct on the "bottom line" in the next quarter. I expect some positive announcement coming the next few weeks. $3 is not out of the question as we approach the next Q and QCC. IMO.

      Most of ITT’s students borrow large sums to pay the high tuition costs and the majority of this money is borrowed from federal student loan programs. But private student loans also provide critical revenue for ITT. Because most ITT students’ federal aid does not cover the full cost of an ITT program, most students face a “tuition gap” requiring them to find other sources of funding.

      The CFPB’s lawsuit alleges that ITT encouraged new students to enroll at ITT by providing them funding for this tuition gap with a zero-interest loan called “Temporary Credit.” This loan typically had to be paid in full at the end of the student’s first academic year. But ITT knew from the outset that many students would not be able to repay their Temporary Credit balances or fund their next year’s tuition gap.

      The CFPB lawsuit alleges that between July 2011 and December 2011, ITT pushed its students into repaying their Temporary Credit and funding their second-year tuition gaps through high-cost private student loan programs. Students were left in the dark about the fact that taking out these high-cost loans would be required to continue their studies. However, ITT’s CEO revealed in investor calls that converting the temporary loans to long-term loans was the company’s “plan all along.”

      • 2 Replies to hotomamido
      • Do you have a site ? Still looking for "8% layoff" report.

      • Every school uses the gap financing... COCO does.

        If they lay off 8%, no big deal.... will keep the boat afloat longer. I also see a lot of Heald College has a lot of Ad in TV lately, seem to be more so than ever, or I am more tuned into CCI due to my long position? Anyway the law suit has to be cleared, otherwise it effects the new enrollment.

        $4 is my goal, $10 is God's gift, we never know .... all it takes is to clear all the law suit, lay off to get into profitable, keep it $1B revenue, and maybe close some more schools.... then why not $10, maybe even $20 .... am I allowed to dream a bit even it is an investment? Haha

        Sentiment: Hold

 
COCO
0.0141+0.0001(+0.71%)Mar 27 3:30 PMEDT