The closure of ITT’s 136 campuses threatens to throw some 29,000 indebted students off their educational tracks, and to saddle taxpayers with nearly a half-billion dollars in losses.
Two employees who were terminated Tuesday as part of mass layoff by ITT Educational Services have filed a lawsuit claiming the Carmel-based firm violated federal law by failing to provide 60-days notice. The suit seeks class-action status for as many as 8,000 employees.
The company will begin the process of liquidating, which will include selling off its Carmel headquarters and other real estate.
Shares in ITT Educational Services Inc. went into a freefall Friday, one day after the U.S. Department of Education banned the company from enrolling new students who receive federal aid. Analysts said ITT isn’t likely to survive the decision.
The decision is a potential death blow to Carmel-based ITT, which derives most of its revenue from federal loans and grants. Its stock was halted Thursday after shares fell 35 percent.
Carmel-based for-profit college operator ITT Educational Services Inc. has received a brief reprieve from its accreditor, which has delayed making a decision that could potentially devastate the embattled company.
In the school year that ended in May, nearly 175,000 students were enrolled in more than 235,000 career and technical classes. That’s an 11 percent increase since the 2012-2013 school year, when Gov. Mike Pence challenged schools to serve students going to work as well as students going to college.
The state warned the institution about low passing rates earlier this year and asked for a “plan of correction”—the first step that could lead to a loss of state accreditation.
ITT Educational Services, the embattled Carmel-based operator of for-profit colleges, has fired its chief administrative and legal officer after less than two years on the job.
The for-profit educator has struggled with demand at 22 of its 26 locations nationwide. The college also just emerged from deep legal trouble as the result of its recruiting practices.
The Department of Education on Monday sent a letter to CEO Kevin Modany, asking the school to show that it has more than $123.6 million available to refund students in the event ITT shuts down unexpectedly.
Carmel-based ITT Educational Services Inc. on Friday reported a smaller quarterly profit and shrinking revenue amid dwindling student enrollment at its ITT Technical Institute campuses.
Jim Streitelmeier, the pastor of Neighborhood Fellowship, has a specific year when he thinks Indianapolis’ social problems really took off:1973. That’s when Indianapolis Public Schools began busing black students to predominantly white schools in order to, at long last, integrate them. And it’s also the year Indiana passed a no-fault divorce law.
Ball State University alumnus John Schnatter and the Charles Koch Foundation are partnering on a $3.25 million grant to establish the center, to be named after the pizza chain founder.
The Purdue Research Foundation and a partner firm are planning a pilot program with 100 to 300 students, who could get tuition funding in exchange for a cut of their future incomes.
The Obama administration on Monday placed additional restrictions on how ITT Educational Services Inc. uses federal student loans, moving the Carmel-based operator of for-profit colleges one step closer to losing access to federal funds.
Kevin Modany will continue to lead the Carmel-based for-profit educator until the year’s end. But Chief Financial Officer Dan Fitzpatrick is expected to be replaced within days.
Shares of ITT Educational Services Inc. shot up by as much as 60 percent Friday morning after the company reported that its first-quarter profit had nearly tripled from a year ago.
New York's attorney general has filed a lawsuit against an Indianapolis-based seller of online nursing studies, alleging it deceptively induced up to 2,000 New Yorkers to sign up in hopes of obtaining an associate's degree in nursing.
Shares of ITT Educational Services nearly doubled in value Friday morning after the company reported a 2014 profit more than three times higher than analysts expected and said its CEO would stay on for another three months.
