Anthem Education, a for-profit chain of colleges and career institutes, filed for bankruptcy Monday, September 1, 2014. The company has abruptly shut down a number of its campuses, including locations in New Jersey, leaving state agencies struggling to funnel displaced students into other institutions.
Anthem had 41 campuses, but prior to declaring bankruptcy the company sold 14 campuses to International Education Corporation.
One of the major contributing factors forcing Anthem to file for bankruptcy was years of enrollment losses. In fall 2006 the company enrolled 21,969 students, according to a 2012 report. In 2010 Anthem campuses enrolled 12,792 students, but now serve roughly 10,000, even though it added 11 campuses in 2012. Anthem estimated its assets at between $1 million and $10 million and has between $50 million and $100 million in debts.
The moment the company declared bankruptcy, all Anthem institutions because ineligible for federal financial aid. Considering that financial aid accounts for 90 percent of Anthem’s revenues, the company may now be forced to close additional locations. According to bankruptcy petition, Anthem expressed hopes to keep 28 campuses up and running.