ITT Technical Institute
||The lead section of this article may need to be rewritten. (March 2014)|
|ITT Technical Institute|
|Motto||Education for the Future|
|Type||For-Profit (NYSE: ESI)|
|President||Eugene W. Feichtner|
|Location||Carmel, Indiana, United States|
|Campus Locations||3 in Alabama; 4 in Arizona; 1 in Arkansas; 15 in California; 2 in Colorado; 12 in Florida; 4 in Georgia; 1 in Idaho; 4 in Illinois; 6 in Indiana; 2 in Iowa; 2 in Kansas; 2 in Kentucky; 2 in Louisiana; 2 in Maryland; 2 in Massachusetts; 8 in Michigan; 3 in Minnesota; 1 in Mississippi; 4 in Missouri; 1 in Nebraska; 2 in Nevada; 1 in New Jersey; 1 in New Mexico; 3 in New York; 5 in North Carolina; 10 in Ohio; 2 in Oklahoma; 2 in Oregon; 7 in Pennsylvania; 4 in South Carolina; 5 in Tennessee; 10 in Texas; 1 in Utah; 6 in Virginia; 3 in Washington; 1 in West Virginia; 4 in Wisconsin|
|Affiliations||ITT Educational Services, Inc. (1994-Present)
ITT Corporation (1965-1994)
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. ITT Educational Services, Inc. (ESI) was spun off by ITT Corporation through an initial public offering (IPO) in 1994, with parent company ITT as an 83% shareholder. ITT Tech licenses the "ITT" name from ITT Corporation, which originates from the latter company's original name "International Telephone & Telegraph".
The Consumer Financial Protection Bureau has informed ITT Educational Services that the federal agency's enforcement office may urge the CFPB to "take legal action" against the for-profit higher education provider for possible violations of federal law, ITT announced in a federal tax filing. In its statement, ITT said that the consumer bureau had notified it about the potential legal action on Dec. 23, 2013. The agency's notice said its enforcement staff plans to allege that the company violated the Dodd–Frank Wall Street Reform and Consumer Protection Act, the Truth in Lending Act, and other financial regulations, and that the staff "expects to recommend seeking remedies and penalties to the fullest extent of the law."
On February 26, 2014, the federal Consumer Financial Protection Bureau (CFPB) sued ITT. The CFPB alleged that ITT Educational Services used high-pressure tactics to coerce students into high-interest private loans that were likely to end in default.
The 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 145 ITT Technical Institutes in 38 states, which primarily provide career-focused degree programs to approximately 60,000 students.
Students and employees have written critically about the school's high tuition and low academic standards.
On February 26, 2014, Consumer Financial Protection Bureau says it is suing ITT because of loans the college chain knew would default.
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."
ITT's brick-and-mortar offerings include multiple locations in 35 states.
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.
For the 2012 academic year, a typical two-year associate degree with on-campus instruction requires 96 credit hours and costs almost $500 per hour ($48,000 total).
Out of concern that students at ITT Tech and other for-profit Technical Institutes are taking on unsustainable levels of debt, the Department of Education implemented new regulations that restrict students at for-profit Technical Institutes from taking out more debt than their future employment prospects would justify.
- 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.
- "Corporate Governance - Management & Directors". ITT Education Services. Retrieved 2010-04-16.
- "Eugene Feichtner: Executive Profile & Biography". BusinessWeek. Retrieved 2010-04-16.
- "About Us". ITT Technical Institute. Retrieved 2010-04-16.
- "ITT Tech Campusus". ITT Tech. Retrieved 20 June 2012.
- 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
- "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"
- "ITT Educational Services, Inc. Company History". Funding Universe. 2008-07-09. Retrieved 2008-12-16.
- "Consumer Agency May Pursue Legal Action Against For-Profit College". Inside Higher Ed. 2013-12-27. Retrieved 2014-02-27.
- "Screw U: How For-Profit Colleges Rip You Off". Mother Jones. Retrieved 2014-02-27.
- Lopez, Ricardo. "Regulator accuses ITT for-profit college chain of predatory lending". latimes.com. Retrieved 2014-02-27.
- "MyITTexperience". MyITTexperience. Retrieved 2014-02-27.
- "U.S. sues college chain ITT over loans". USA Today. February 26, 2014. Retrieved February 27, 2014.
- ITT Technical Institute FAQ
- "Clever Is as Clever Does", Barron's, Saturday, April 14, 2012
- "ITT Educational Services, Inc. Gainful Employment 2013/2014 Total Cost of Attendance Table". ITT Tech. Retrieved 2014-02-27.
- "In Hard Times, Lured Into Trade School and Debt", New York Times, March 13, 2010
- ITT Educational Services, Inc · 424B4 · On 1/27/99
- Feds serve warrants at ITT Tech campuses, CNN
- Federal Probe Targets ITT Tech, CertCities March 2, 2004
- ITT's CEO Expects Lengthy Federal Investigation, Stock Slips, Channel Web Network, Feb. 26, 2004, Mark Jewell
- ITT, Calif. Settle False Claims Lawsuit, Inside Higher Education, Oct. 18, 2005, Doug Lederman
- NBC26 Special Report: Easy A's, WGBA-TV, Accessed 2/17/11[dead link]
- I-Team: Teachers Told to Lie?, WTMJ-TV, Accessed 3/3/11