Taxpayers could lose billions as U.S. students escape loans
The unwinding of for-profit education companies could allow tens of thousands of students to walk away from their federal loan obligations.
Student loans
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ITT shares surge again after another profit surprise
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.
UPDATE: SEC hits ITT Educational, execs with fraud charges
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.
Bill would educate students about their college loans
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.
Indiana’s college graduate’s average debt: $28K
That per-student figure was the 16th highest among the 50 states, according to The Project on Student Debt report put out by The Institute for College Access & Success.
ITT shares plunge 35 percent after SEC threatens action
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.
Sallie Mae spinoff Navient tries not to shrink
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.
ITT Educational says access to student-loan funds in danger
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.
UPDATE: ITT’s stock tumbles after report of loan losses
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.
With heat on company, ITT’s CEO Modany swings back
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.
ITT student-loan bet stings Lilly’s credit union
A default-prone portfolio of loans to ITT Educational Services students has come back to haunt Eli Lilly Federal Credit Union, a full-service but otherwise conservative institution.
U.S. student-loan debt adds to growing wealth gap
Roughly 37 million people in the U.S. are saddled with $1 trillion in student debt, a factor contributing to the widening of the gap between rich and everyone else in the country.
Feds’ ITT lawsuit built on reports from mystery shoppers
The shoppers, who were hired by the Carmel-based operator of for-profit colleges, generated the bulk of the material cited in the Consumer Financial Protection Bureau’s complaint.
Bill to help some teachers repay loans advances
Certain students who go on to teach science, math or special education in Indiana could get up to $9,000 to pay off loans if a legislative proposal becomes law.
State joins plan to help students graduate with less debt
Gov. Mike Pence announced Monday that Indiana is one of three states selected to lead a national initiative aimed at ensuring more college students graduate on time and with less debt.
Study: IU, Purdue rank best in return on investment
Big budgets used to rule in college rankings. But that could be changing. A new report from the Indiana Commission for Higher Education is the latest effort among several nationally to score universities on their bang for the buck.
Debt collectors brawling in court
Todd Wolfe, the 41-year-old founder of Deca Financial Services in Fishers, is at the center of a legal feud with Educational Credit Management Corp., an Oakdale, Minn., not-for-profit that insures $35 billion in federal student loans.
Sallie Mae expects split to have ‘limited’ effect in Indiana
The student lender wants to separate its education loan management and consumer bank businesses into two publicly traded entities. The firm is a major employer in Indiana, with more than 2,600 employees at offices in Indianapolis, Fishers and Muncie.
Ivy Tech to go after student debtors’ tax refunds
Students who owe Ivy Tech Community College money will have their tax refunds diverted to cover the debt under a new policy the statewide college system is implementing.
Analysts: ITT’s woes are likely to worsen
Investors have dumped the already-depressed shares of ITT Educational Services Inc. after the operator of for-profit colleges shelled out $46 million for bad private student loans it had backed to help students pay the portion of its pricey tuition that federal loans won’t cover. With fewer ITT graduates able to find jobs, the default rates on these loans has spiked.