ITT Educational Services Files for Bankruptcy After Shutdown

ITT Educational Services Files for Bankruptcy After Shutdown
http://www.bloomberg.com/news/articles/2016-09-16/itt-educational-services-files-for-bankruptcy-after-shutdown-it6byu6t

Dawn McCarty  Shahien Nasiripour
September 16, 2016 Updated on September 17, 2016

ITT Educational Services Inc. began liquidation proceedings in an Indianapolis bankruptcy court Friday after closing 136 technical schools, leaving over 35,000 students stranded in one of the largest college shutdowns in U.S. history.

The 50-year-old for-profit college operator, which had campuses in 38 states, said it was forced to close its doors after the U.S. Education Department demanded a steep increase in the security the company would have to post to guarantee federal student aid. More than 8,000 employees were affected by the shutdown, with the majority losing their jobs, Carmel, Indiana-based ITT said. The company announced this week that it would cease all operations Friday. Continue reading

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The Clinton For-Profit College Standard ITT’s biggest mistake was not putting Bill Clinton on the payroll.

The Clinton For-Profit College Standard
ITT’s biggest mistake was not putting Bill Clinton on the payroll.

http://www.wsj.com/articles/the-clinton-for-profit-college-standard-1473204250

Sept. 6, 2016

415 COMMENTS

ITT Technical Institute folded on cue Tuesday after the Obama Administration issued a regulatory death warrant last month. ITT investors must be wishing they had ponied up for political protection like Laureate International Universities, the for-profit college that paid Bill Clinton $17.6 million to serve as its “honorary chancellor.”

ITT’s decision to close all of its 130 some campuses—stranding 40,000 students and 8,000 employees—comes after the Education Department barred new enrollees from tapping federal aid, delayed loan reimbursements and raised its collateral by $153 million. ITT had a mere $78 million on hand at the end of June and no way of meeting the Administration’s cash demand. Continue reading

The ITT Fraud: For-Profit Education and the Crisis of the Commons

The ITT Fraud: For-Profit Education and the Crisis of the Commons

by ANTHONY DIMAGGIO

SEPTEMBER 5, 2016

http://www.counterpunch.org/2016/09/05/the-itt-fraud-for-profit-education-and-the-crisis-of-the-commons/

The rapid decline of the ITT for profit-college may represent a pivotal moment in modern history, as seen in rising challenges to predatory capitalism. ITT is in deep trouble, subject to numerous lawsuits, from the Securities and Exchange Commission and Consumer Finance and Protection Bureau (CFPB) for defrauding students. The con that is for-profit education is finally being exposed, and these “higher learning” institutions are increasingly recognized for their rapacious treatment of students. Within this context, the Wall Street Journal seeks to reframe the attack on ITT as the work of the big, bad government, which is committed to stifling the liberties inherent in private enterprise. Contrary to the paper’s propaganda, however, the narrative of for-profit colleges as a beleaguered David facing the onslaught of a brutal government Goliath bears little resemblance to reality. Continue reading

How ITT Tech Sold Itself To Students

How ITT Tech Sold Itself To Students

http://wlrn.org/post/youre-dealing-one-call-close-how-itt-tech-sold-itself-students

‘You’re Dealing With A One-Call Close:’ How ITT Tech Sold Itself To Students

By ROWAN MOORE GERETY 

Before he moved to Miami, Waltter Teruel sold antiques and life insurance in New York. Working as a recruiter at ITT Technical Institute in Hialeah was a welcome change. “I mean, if you’re a salesperson, you have to lie through your teeth,” he said, “but in this case, it’s one of the sales where you actually don’t have to lie at some point.”

Everything ITT students need to know now that the for-profit school has closed

Everything ITT students need to know now that the for-profit school has closed
By Danielle Douglas-Gabriel September 7
https://www.washingtonpost.com/news/grade-point/wp/2016/09/07/everything-itt-students-need-to-know-now-that-the-for-profit-school-has-closed/
The Chantilly, Va., campus of ITT Technical Institute sits closed and empty on Tuesday, Sept. 6, 2016. (Photo by Jahi Chikwendiu/The Washington Post)
The abrupt closure of ITT Technical Institutes on Tuesday left 35,000 students without degrees that many took on debt to complete. None of the options available to those students are simple and each comes with its own set of drawbacks. Continue reading

Scrambling for Options

Scrambling for Options
With ITT Tech headed toward possible collapse, its students begin weighing whether to transfer or to seek to have their federal loans forgiven.
September 1, 2016
By
Ashley A. Smith
https://www.insidehighered.com/news/2016/09/01/options-itt-tech-students-if-profit-chain-collapses?utm_source=Inside+Higher+Ed&utm_campaign=209caa5fb2-DNU20160901&utm_medium=email&utm_term=0_1fcbc04421-209caa5fb2-199365625&mc_cid=209caa5fb2&mc_eid=5006b95312

When Corinthian Colleges collapsed last year, the for-profit chain’s students suddenly found their classroom doors locked. Students at ITT Technical Institute now face similar worries as it looks like the end of the road for the for-profit institution and its 130 campuses.
Last week, after years of investigations, the U.S. Department of Education banned ITT Tech from enrolling new students who receive federal funding while also increasing financial oversight with several measures. This week ITT posted a notice on its website stating it was no longer enrolling new students. Continue reading

Good Riddance: 6 Facts About The ITT Tech Shut Down

Good Riddance: 6 Facts About The ITT Tech Shut Down

09/06/2016 12:18 pm ET | Updated Sep 08, 2016

http://www.huffingtonpost.com/davidhalperin/good-riddance-6-facts-abo_b_11876980.html

David Halperin Attorney, advocate, writer at RepublicReport.org

This morning, one of the nation’s biggest for-profit colleges, ITT Tech, announced that it has permanently shut down its academic operations and fired the “overwhelming majority” of its more than 8,000 employees. In a typically self-pitying, remorseless statement, the company blamed all its woes on the U.S. Department of Education, which, ITT claimed, acted with “a complete disregard … for due process to the company.”itt Continue reading

For-profit colleges transform into nonprofits to evade rules, report suggests

For-profit colleges transform into nonprofits to evade rules, report suggests

By Jillian Berman

Published: Oct 7, 2015 2:46 p.m. ET

http://www.marketwatch.com/story/for-profit-colleges-transform-into-nonprofits-to-evade-rules-report-suggests-2015-10-07?link=sfmw_fb 13

Arne Duncun Obama.png

U.S. Secretary of Education Arne Duncan (L) with President Barack Obama on March 16, 2015.

For-profit colleges may have found a loophole to evade the Obama administration’s crackdown on the industry: Transform into nonprofit institutions.

Four college chains, which account for a total of about 50 campuses nationwide, converted to nonprofit entities over the last several years, but still act in many ways like profit-seeking enterprises, a new report suggests.

Continue reading