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.
Has Indiana made any progress in tackling student debt since students started racking it up through the Great Recession? The answer is somewhat complicated, higher education finance experts say.
Purdue University is taking the next step toward a controversial program in which students could get financial help for school from so-called investors in exchange for some of their future earnings.
Education Management Corp., the parent company of the schools, will pay Indiana, four other states and the federal government $95.5 million over a period of years to settle whistleblower lawsuits.
Indiana Attorney General Greg Zoeller is urging Indiana members of Congress to work to restore a longstanding prohibition on student loan debt collectors from using robocalls to cellphones.
The lawsuit asks the court to clarify 1970s-era rules that prevent borrowers from getting rid of education debt in bankruptcy, except in cases in which repaying it would constitute an “undue hardship.”
Under the plan, a student draws from an investment pool to get money to pay for tuition and agrees to repay with a portion of the student's future income over a fixed period of time.
The unwinding of for-profit education companies could allow tens of thousands of students to walk away from their federal loan obligations.
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.
ITT Educational CEO Kevin Modany and Chief Financial Officer Daniel Fitzpatrick allegedly “engineered a campaign of deception and half-truths” to hide from investors the extent of losses ITT was suffering from student loan programs, the SEC said Tuesday morning.
Students using loans to pay for college might get some extra help when it comes to gathering information about their debt load if an Indiana House bill becomes law.
ITT Educational Services Inc. dodged a bullet from the U.S. Department of Education, according to a securities filing issued Friday morning, but now faces a new threat: a potential enforcement action from the U.S. Securities & Exchange Commission.
Navient Corp., which employs 2,300 in its Fishers, Indianapolis and Muncie offices, is in the running for a big contract with the U.S. Department of Education even as the student-loan-servicing company faces criticism after admitting it overcharged military service members by millions of dollars.
Carmel-based ITT Educational Services Inc. said the U.S. Education Department may limit its access to student-loan funds because the company is unable to provide audited financial statements.
ITT Educational Services Inc. stock plunged more than 31 percent Thursday after it announced that it spent an extra $43.7 million in the first quarter to cover mounting losses on private student-loan programs.
But in an interview with IBJ, ITT Educational Services CEO Kevin Modany asserted that for-profit colleges are a good deal, that they produce better results than community colleges, and that they are critical for the state and nation to close the skills gap among workers.