The paper loss issue – a paper loss is not an actual cash loss, in other words the company may well be running with positive cash flow, able to pay it’s actual real bills, and perhaps even accumulate cash, but there are other “expenses” it can take, like depreciation of fixed assets, or interest payments on a line of credit that are being capitalized rather than being paid – these “expenses” are deductions from the company’s current income for taxation purposes even though they do not represent actual outlays of cash in the current fiscal period.
The schools may be looking at that and thinking that the business is indeed generating more money than it looks like it is, and that therefore there should be more money available to pay tuition.