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College operator blames Ed Dept for financial woes during shutdown
Higher Ed Dive
Natalie Schwartz
August 2, 2021
UPDATE: Aug. 27, 2021: The Center for Excellence in Higher Education, an embattled college operator that is shutting down operations, wrote to at least some employees this week saying it does not have the funds to pay their severance and retention bonuses, according to reporting and documents obtained by the Republic Report.
CEHE blamed the lack of funds on delays in the U.S. Department of Education’s processing of a $29 million reimbursement request for federal student aid. It also blamed the department for preventing it from selling “certain assets.”
The organization said it will pay the employees when funds become available. “CEHE does not dispute that the bonus and severance payment is owed to you, however, filing a lawsuit to collect what is owed to you will not result in your being paid,” states the letter, whose addressee is blacked out. “Currently, there is no money to pay you.”
Paul Gardner, CEHE’s CEO, did not immediately respond to Higher Ed Dive’s request for comment Friday