The messy unwinding of Corinthian Colleges was an unprecedented dance among various actors: the U.S. Department of Education, state attorneys general, the Consumer Financial Protection Bureau and buyers like ECMC’s Zenith Group — not to mention members of Congress and student and consumer groups.
But another, far less visible, entity also had a strong interest in and influence on the outcome: Bank of America and a handful of other banks.
The extent to which those institutions, which lent money to help keep Corinthian afloat, were involved in managing the for-profit college giant as it hurtled toward ruin is becoming clearer in the company’s ongoing bankruptcy proceedings. And it highlights the significant power and influence banks that lend to for-profit colleges are increasingly wielding over those institutions, especially as many companies in the industry face greater cash flow problems and stiffer regulatory scrutiny.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/08/20/profit-education-sector-faces-financial-woes-and-greater-regulatory-scrutiny-banks
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