For-profit education companies are facing public criticism and regulatory scrutiny over high drop-out rates, graduates' poor job prospects and the high debt levels of its students.
The U.S. Consumer Financial Protection Bureau is investigating at least two for-profit colleges, including ITT Educational Services Inc., over potentially abusive practices in marketing and originating student loans.
ITT Educational Services Inc. said new-student enrollment rose 5.2 percent in the third quarter, to 20,307. However, total student enrollment was down 7 percent from a year ago, to 60,997.
The outrage that seemed to leap from an order that Judge Tonya Walton Pratt issued last year was entirely missing from a new appeals court ruling reversing her dismissal and the attorneys’ sanctions.
The Carmel-based operator of for-profit colleges signed up 16,883 new students in the quarter ended June 30, a 7.5-percent increase from the same period last year.
In the heart of a mediocre earnings season for public companies, Indianapolis-based firms Angie’s List and ITT Educational Services on Thursday shot to the top of the stock ticker.
Profit and revenue fell dramatically in the first quarter as students continued to steer away from the Carmel company, one of the country's largest for-profit colleges.
Shares of ITT Educational Services Inc., one of the country's largest for-profit colleges, tumbled nearly 17 percent Monday after it disclosed that U.S. regulators subpoenaed documents related to private loan programs for its students.
For a guy whose company’s stock price has lost 75 percent of its value, Kevin Modany, the CEO of ITT Educational Services Inc., sounds pretty upbeat. And it seemed to rub off on investors Thursday.
ITT Educational Services Inc. shares swooned Thursday morning after the private educator reported sinking revenue and a $9.5 million loss in the fourth quarter. But the stock rebounded strongly later Thursday.
ITT Educational Services Inc. will not close any of its campuses in response to plummeting student enrollment, but it likely will spend more of its own money to give scholarships to students, company officials said Thursday.
For-profit colleges put revenues above education, and charge students high tuition and loan rates that could leave them in debt for years, a Senate Democratic report said Monday. Stock in for-profit colleges tumbled after the report.
Performance varied widely as industries ebbed, flowed.
First-quarter profit and revenue plunged at Carmel-based ITT Educational Services Inc. as enrollment of new students declined for the seventh straight quarter.
Judge Tanya Walton Pratt late last month granted ITT’s motion for attorney’s fees and sanctions against Mississippi attorney Timothy Matusheski, as well as two law firms that worked with him on the case—Motley Rice LLC in Los Angeles and Plews Shadley Racher & Braun LLP in Indianapolis.