ITT Educational Services took it on the chin in the fourth quarter as big payments stemming from a 2009 student-loan arrangement forced an $11.6 million loss. Adding to the woes is another probe by the federal government.
For-profit colleges, bruised by years of investigations and rule-making, may face additional financial pressure from a new wave of state probes by attorneys general and the U.S. Consumer Financial Protection Bureau.
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.
The for-profit educator won approval last month to start a charter school for 11th- and 12th-graders inside one of its ITT Technical Institutes in Indianapolis.
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.
Carmel-based ITT Educational Services Inc. provides technology-oriented, post-secondary education, including associate’s, bachelor’s and master’s degrees as well as non-degree programs.
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.
Wall Street reacted unfavorably to the settlement Monday, as ITT shares fell as much as 22 percent, to $15 a share. Shares traded for more than $66 about 10 months ago.
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 school operator ITT Educational Services Inc. told investors late last month that it had worked out a tentative deal with an outside party that would provide $100 million in loans to its students.
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.
ITT Educational Services Inc.'s stock took a licking Thursday after its quarterly earnings report badly missed expectations of Wall Street analysts.
Performance varied widely as industries ebbed, flowed.
