NEW: For-Profit College Closes in RI
Wednesday, January 02, 2013
A for-profit college with one of the highest loan default rates in the state has abruptly closed, GoLocalProv has learned.
Last year, GoLocalProv reported that more than 21 percent of the students who began repaying loans from the Sawyer School in fiscal years 2009 and 2010 were in default. Of Rhode Island’s higher educational institutions, only Lincoln Tech (25 percent) had a worse default rate
The Sawyer School’s closure comes on the heels of the Cranston-based Sanford-Brown Institute’s decision to close in 2014. Career Education Corp., the company that runs a nationwide chain of for-profit colleges including Sanford-Brown Institute, saw a sharp decrease in new student enrollment (down 22.3 percent) and reported losses of $30.8 million in the third quarter, which ended Sept. 30. The closing of the schools will result in approximately 900 lost jobs nationwide.
The New England Institute of Technology (NEIT) has said that it stands ready to assist students in completing their education at New England Tech, according to Seth Kurn, Executive Vice President at NEIT.