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Dozens of for-profit university campuses across the country. closed abruptly this week after their parent company lost its accreditation and funding.
The schools belong to Education Corp. of America (ECA), a Birmingham, Alabama-based company that operates more than 75 campuses in the United States. Its campuses have different names, many of which offer a "career-oriented" degree.
A statement on the ECA student information page announced the closure of its campuses in December 2018, including Brightwood College, Brightwood Career Institute, Ecotech Institute, the Golf Academy of America and Virginia College. 19659006] This decision comes after the Accreditation Council of Independent Colleges and Schools suspended the accreditation of ECA on December 4.
The company is one of the largest for-profit colleges in the country, serving at least 20,000 students, reports Inside Higher Ed. [19659006] Nov. 30: The opposition of a college to a student workers union could hinder efforts to unionize nationally
Nov. 6: Burdened with huge student loan debt, homebuyers make more sacrifices to buy a home
In Corpus Christi, Texas, Brightwood College branch on Wednesday, students stunned walked around the campus crying.
Alexis Gurrola, a dental assistants program student, said she did not know what her next steps would be. She was "best in class" and received unequivocal results in the four months she attended Brightwood.
"They do not really have a lot of answers for us," Gurrola said. "We can pass our final test and get credit for this last course."
The loss of accreditation was a fatal blow to the ECA in difficulty. In October, the company announced that it had contracted nearly $ 50 million from unsecured creditors, prompting ECA to seek legal redress before the owners evicted it from its premises.
The company had previously announced the closure of some sites after the end of classes.
A letter addressed to students by Stu Reed, president of ECA, cites the changing requirements of the Ministry of Education during the restructuring of the company as a challenge to which the Company was facing.
The complete letter reads as follows:
Dear Students,
In the fall, we undertook a radical restructuring of the Education Corporation of America * (parent company of the campus on which you have postulated) in order to preserve it for the future. This plan provided for the commitment of additional funds from investors.
However, the Ministry of Education has recently added requirements making the operation of our schools more arduous. In addition, last night, ACICS suspended the accreditation of our schools with the intention of withdrawing. The uncertainty associated with these requirements has resulted in the impossibility of obtaining additional capital to operate our schools.
It is with extreme regret that this series of recent circumstances has forced us to end the activities of our schools. Unfortunately, this means that your registration will be canceled and that there will be no more courses on campus where you enrolled nor on the campus of the Education Corporation of America.
We encourage you to continue your professional training at another school in your area that offers the same or similar program.
This is clearly not the result we envision for you or our schools, and it is with deep regret that I inform you of this direction.
Stu Reed,
President & CEO
If a school closes, student borrowers may apply to the US Department of Education to cancel these loans, according to the Project Director on Predatory Student Lending, Toby Merrill.
19659006] Contribution: Christopher Salvemini, Knoxville News Sentinel; Julie Garcia, Corpus Christi Caller Times; The Associated Press.
Read or share this story: https://www.usatoday.com/story/news/education/2018/12/05/virginia-college-brightwood-college-and-others-abruptly-shut-down/22216550002 /
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