Misplaced Pages

Revision as of 16:39, 6 February 2015

The article's lead section may need to be rewritten. Please help improve the lead and read the lead layout guide. (March 2014) (Learn how and when to remove this message)

ITT Technical Institute

Motto	Education for the Future
Type	For-Profit (NYSE: ESI)
Established	1969
President	Eugene W. Feichtner
Students	57,000
Location	Carmel, Indiana, United States
Campus Locations	More than 130 campuses
Affiliations	ITT Educational Services, Inc. (1994-2014) ITT Corporation (1965-1994)
Website	www.itt-tech.edu

ITT Technical Institute (often shortened to ITT Tech or ITTTI), is a for-profit technical institute with over 130 campuses in 38 states of the United States. ITT Tech is owned and operated by ITT Educational Services, Inc. (NYSE: ESI), a publicly traded company headquartered in Carmel, Indiana.

Students and employees have written critically about the school's high tuition and low academic standards. ITT Technical Institute charges among the highest tuition in the industry. It also has the industry's highest rate of loans that go into default within two years of attendance. In 2014, the tuition for attending an ITT Tech campus ranged from $45,000 to $85,000. According to ITT Tech literature, credits earned at ITT Tech are unlikely to transfer to other colleges

On February 26, 2014, the CFPB sued ITT alleging they used high-pressure tactics to coerce students into high-interest private loans that were likely to end in default. ESI is also being investigated by at least a dozen state Attorneys General.

Company history

ITT Tech was founded in 1946 as Educational Services, Inc. and has been headquartered in Carmel, Indiana, since 1969. From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of ITT Corporation (as "ITT/ESI"). By 1999, ITT Corp. (which had merged with Starwood Hotels & Resorts Worldwide the year before) divested itself completely of ITT Tech's shares but the schools still use the "ITT" name under license. It operates over 130 ITT Technical Institutes across the US, which primarily provide career-focused degree programs to approximately 60,000 students.

California Regent Richard C. Blum (Senator Dianne Feinstein's husband) has been a significant shareholder of the stock despite allegations of conflict of interest.

Board member Vin Weber has also been a key political operative for the company since 1994.

On February 26, 2014, the Consumer Financial Protection Bureau sued ITT for its use of loans the college chain knew would default.

In August 2014, the US Department of Education placed ESI under "heightened cash monitoring" failing to submit financials and compliance audits tied to its administration of federal financial aid. CEO Kevin Modany also announced his resignation.

In the wake of these problems, accounting firm PricewaterhouseCoopers left ESI and Deloitte was named the external auditor for ESI.

In November 2014, J.P. Morgan Chase Bank loaned ITT Educational Services $79,000,000 to "satisfy a federal penalty."

In December 2014, Cerberus Capital Management issued a $100,000,000 term loan to ESI. The loan will mature in December 2017.

Academic services

ITT Tech offers AAS, bachelor's BAS, and master's (business-only, online) degrees. ITT Tech is nationally accredited by the Accrediting Council for Independent Colleges and Schools. It may be impossible to transfer credits from ITT to a traditional university; per the ITT Web site, "it is unlikely that any credits earned at an ITT Technical Institute will be transferable to or accepted by any institution other than an ITT Technical Institute."

Campuses

ITT's brick-and-mortar offerings include more than 130 locations in 35 states. In 2013 USA Today listed more than 50 ITT campuses as "red flag" schools because their student loan default rates were higher than their graduation rates.

Investigations, Lawsuits, and Controversies

• In August 1998, 15 former students alleged misrepresentation, fraud and concealment by ITT arising out of their recruitment and education at ITT campuses. In September 1998, ITT settled all of the claims.
• On February 25, 2004, federal agents raided the company's headquarters and ten of its campuses. The investigation negatively affected the company's stock and triggered several class action lawsuits by investors.
• In October 2005, ITT agreed to pay $730,000 to settle a lawsuit with California in which employees alleged that it inflated students' grade point averages so they qualified for more financial aid from the State of California.
• An investigation by WGBA-TV (NBC26, Green Bay, Wisconsin) found evidence of widespread grade inflation. In one instance, a student got 100% on a computer forensics assignment by emailing the professor a noodle recipe. The station believes this to be a way to increase federal student aid funding.
• In early March 2011 WTMJ-TV (NBC4, Milwaukee, Wisconsin) ran an investigation finding teachers lying on attendance records so they could get cash bonuses paid by ITT Tech. ITT Tech formerly used an attendance policy as part of a requirement to get financial aid to show student progress.
• In 2012, ITT Tech was one of the for-profit colleges investigated by the Harkin Commission.
• In 2013, a complaint was filed against ESI and two ESI executive officers in US District Court for the Southern District of New York regarding securities. The Massachusetts Laborers’ Annuity Fund filed a similar complaint and the cases were consolidated. The Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund were the lead plaintiffs.
• Students continue to allege that private loans with JP Morgan Chase and other banks are predatory.

See also

• For-profit higher education in the United States

References

1. http://www.wsj.com/articles/itt-enrollment-not-as-bad-as-feared-1413556204
2. "Corporate Governance - Management & Directors". ITT Education Services. Retrieved 2010-04-16.
3. "Eugene Feichtner: Executive Profile & Biography". BusinessWeek. Retrieved 2010-04-16. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
4. ITT Educational Services, Inc. Announces the Opening of its First College in West Virginia Expanding the Company's Reach into 37 States MarketWatch, November 14, 2008
5. "FAQ." ITT Technical Institute. Retrieved on November 23, 2011. "Our principal executive offices are located at: ITT Educational Services, Inc. 13000 North Meridian Street, Carmel, Indiana 46032"
6. http://www.nytimes.com/2010/03/14/business/14schools.html?src=me&ref=general&_r=0
7. "Clever Is as Clever Does", Barron's, Saturday, April 14, 2012
8. http://programinfo.itt-tech.edu/cost.pdf
9. http://www.itt-tech.edu/credits.pdf
10. Lopez, Ricardo. "Regulator accuses ITT for-profit college chain of predatory lending". latimes.com. Retrieved 2014-02-27.
11. http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/
12. http://www.huffingtonpost.com/davidhalperin/state-attorneys-general-o_b_4677145.html
13. http://www.wsj.com/articles/SB10001424052702303819704579318872286744010
14. http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10317593-390053-429448&type=sect&TabIndex=2&dcn=0001193125-14-418646&nav=1&src=Yahoo
15. http://www.counterpunch.org/2010/03/01/who-runs-the-university-of-california/
16. http://articles.latimes.com/2010/jul/14/business/la-fi-hiltzik-column-20100714
17. http://www.berkeleydailyplanet.com/issue/2010-06-22/article/35661
18. "U.S. sues college chain ITT over loans". USA Today. February 26, 2014. Retrieved February 27, 2014.
19. http://www.ibj.com/articles/48892-itt-educational-ceo-signals-resignation-amid-stock-freefall-federal-scrutiny
20. http://www.law360.com/articles/593666/itt-auditor-walks-away-amid-ceo-search
21. http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10343384-859-6287&type=sect&TabIndex=2&dcn=0000922475-14-000046&nav=1&src=Yahoo
22. http://www.law360.com/articles/593666/itt-auditor-walks-away-amid-ceo-search
23. http://www.streetinsider.com/Corporate+News/ITT+Educational+Services+(ESI)+Enters+$100M+Term+Loan+Agreement+with+Cerberus+Business/10073284.html
24. ITT Technical Institute FAQ
25. http://www.usatoday.com/story/news/nation/2013/07/02/college-default-rates-higher-than-grad-rates/2480295/
26. ITT Educational Services, Inc · 424B4 · On 1/27/99
27. Feds serve warrants at ITT Tech campuses, CNN
28. Federal Probe Targets ITT Tech, CertCities March 2, 2004
29. ITT's CEO Expects Lengthy Federal Investigation, Stock Slips, Channel Web Network, Feb. 26, 2004, Mark Jewell
30. ITT, Calif. Settle False Claims Lawsuit, Inside Higher Education, Oct. 18, 2005, Doug Lederman
31. Diamant, Aaron. "I-Team: Easy A's". WGBA-TV. Archived from the original on 2011-02-18. Retrieved 2014-11-02.
32. I-Team: Teachers Told to Lie?, WTMJ-TV, Accessed 3/3/11
33. http://www.republicreport.org/2012/for-profit-college-recruiter-harkin-report/
34. http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10317593-390053-429448&type=sect&TabIndex=2&dcn=0001193125-14-418646&nav=1&src=Yahoo
35. http://www.sueeasy.com/class_action_detail.php?case_id=413
36. http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/

External links

• Official website

v t e Colleges and universities in the Indianapolis metropolitan area
Public institutions	Ball State University‡ Indiana University Indianapolis Ivy Tech Community College of Indiana (Central Indiana Region) Purdue Polytechnic‡ Purdue University Global‡ Purdue University in Indianapolis‡ Vincennes University‡
Private institutions	Anderson University Bishop Simon Bruté College Seminary Butler University Christian Theological Seminary College of Biblical Studies DePauw University Franklin College Indiana Bible College Indiana Institute of Technology‡ Indiana Wesleyan University‡ Marian University Martin University Oakland City University‡ Trine University‡ Union Bible College University of Indianapolis
For-profit institutions	American College of Education Chamberlain University College of Nursing‡ Fortis College‡ International Business College Lincoln Tech‡ Salem University‡ South College‡
Defunct	Harrison College Indiana University–Purdue University Indianapolis ITT Technical Institute
Footnotes	The ‡ symbol denotes institutional branches whose main campuses are located outside the Indianapolis metropolitan area.

v t e Colleges and universities in Metropolitan Evansville
NCAA Division I	University of Evansville University of Southern Indiana
NCAA Division II	Oakland City University
Vocational colleges & satellite campuses (NCAA) (NJCAA)	Indiana Ivy Tech Community College - Evansville Campus Ivy Tech Community College - Princeton Campus Oakland City University - Evansville Campus Vincennes University - Fort Branch Campus Indiana University School of Medicine - Evansville Kentucky Henderson Community College Murray State University - Henderson Campus

• Companies listed on the New York Stock Exchange
• Educational institutions established in 1946
• Companies established in 1994
• For-profit universities and colleges in the United States
• Companies based in Indiana
• Vocational education in the United States
• Colleges accredited by the Accrediting Council for Independent Colleges and Schools
• ITT Corporation
• Carmel, Indiana
• 1946 establishments in the United States