Weekly Market Update
EDUCATION CORPORATION OF AMERICA ANNOUNCES CLOSURE
Thursday, December 6, 2018
On Wednesday, Education Corporation of America ("ECA"), one of the country's largest for-profit college operators with 75 locations and over 20,000 students, announced the closure of all campuses. The chain has been struggling for months financially -- enrollment had been declining over the years, and it reported nearly $50 million in debt to unsecured creditors in October. The U.S. Department of Education, which has been working with ECA to help students attending those schools that were previously scheduled for closure, also plans to work with the institution to assist students in transferring their credits elsewhere or applying for loan forgiveness.
In Other News
- The yield curve inverted this week: the interest rate on 3-year Treasury notes was higher than the 5-year rate for the first time since 2007.
- The University of Alabama at Birmingham received a donation of $30 million, the largest single gift in its history, for its Comprehensive Cancer Center.
- The Central Michigan University Police Department implemented a "Food For Fines" program for the week, giving those who received an on-campus parking ticket an opportunity to have their tickets reduced or excused up to $35 in exchange for donating non-perishable food items to the University's Student Food Pantry.
- Case Western Reserve University and Cleveland State University announced a partnership to conduct research on an array of technologies such as blockchain, Internet of Things (IoT), and augmented and virtual reality.
- Purdue University has maintained its tuition freeze for the seventh year. It credits efficiency and core mission investment for its ability to do so.