Another for-profit college in trouble: ITT Tech sanctioned by government
After years of scrutinizing recruitment and loan practices of ITT Technical Institutes, the US Education Department has slapped a series of major sanctions on the for-profit company, including a ban on accepting new students who rely on federal aid.
The Department of Education (DoE) announced Thursday that the ban and beefed-up oversight of ITT Educational Services, the parent company of ITT Technical Institutes, is based on ITT’s accreditation status through the Accrediting Council for Independent Colleges and Schools, which has said ITT “is not in compliance and is unlikely to become in compliance with [ACICS] accreditation criteria.”
The accreditor recently told the DoE it has doubts about ITT’s compliance with requirements related to its financial structure, admissions practices, recruitment, job placement, management, and overall institutional integrity, according to Inside Higher Ed.
The DoE also demanded the company inform its students — about 45,000 people at 139 campuses in nearly 40 states — that its accreditation status is not stable. The company must increase within 30 days its amount of cash reserves, from $94.4 million to $247.3 million, or 40 percent of federal student aid the company took in last year. ITT revenue in 2015 hit $850 million, with around $580 million coming from federal student loans, according to the Indianapolis Star. – READ MORE