ITT Technical Institute

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ITT Technical Institute
ITT TI logo.PNG
Motto Education for the Future
Established 1969
Type For-Profit (NYSEESI)
President Eugene W. Feichtner[2][3]
Students 57,000
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[4]
Affiliations ITT Educational Services, Inc. (1994-2014)
ITT Corporation (1965-1994)
Website http://www.itt-tech.edu
ITT Tech Canton, Michigan campus

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.[5] ITT Tech is owned and operated by ITT Educational Services, Inc. (NYSEESI), a publicly traded company headquartered in Carmel, Indiana.[6]

Students and employees have written critically about the school's high tuition and low academic standards.[7] [8]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.[9] In 2014, the tuition for attending an ITT Tech campus ranged from $45,000 to $85,000. [10] According to ITT Tech literature, credits earned at ITT Tech are unlikely to transfer to other colleges [11]

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.[12][13] ESI is also being investigated by at least a dozen state Attorneys General. [14][15][16]


Company history[edit]

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.

California Regent Richard C. Blum (Senator Dianne Feinstein's husband) has been a significant shareholder of the stock[17][18]

On February 26, 2014, the Consumer Financial Protection Bureau sued ITT for its use of loans the college chain knew would default.[19]

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.[20]

In the wake of these problems, accounting firm PricewaterhouseCoopers left ESI and [21]Deloitte was named the external auditor for ESI. [22]

In November 2014, J.P. Morgan Chase Bank loaned ITT Educational Services $79,000,000 to "satisfy a federal penalty." [23]

In December 2014, Cerberus Capital Management issued a $100,000,000 term loan to ESI. The loan will mature in December 2017.[24]

Academic services[edit]

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."[25]

Campuses[edit]

ITT's brick-and-mortar offerings include multiple locations in 35 states.

Investigations, Lawsuits, and Controversies[edit]

  • 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.[26]
  • On February 25, 2004, federal agents raided the company's headquarters and ten of its campuses.[27] The investigation negatively affected the company's stock and triggered several class action lawsuits by investors.[28][29]
  • 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.[30]
  • 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.[31]
  • 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.[32]
  • In 2012, ITT Tech was one of the for-profit colleges investigated by the Harkin Commission.[33]
  • Students continue to allege that private loans with JP Morgan Chase and other banks are predatory. [34]

[35]

See also[edit]

References[edit]

  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. 
  4. ^ "ITT Tech Campusus". ITT Tech. Retrieved 20 June 2012. 
  5. ^ 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
  6. ^ "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"
  7. ^ http://www.nytimes.com/2010/03/14/business/14schools.html?src=me&ref=general&_r=0
  8. ^ "MyITTexperience". MyITTexperience. Retrieved 2014-02-27. 
  9. ^ "Clever Is as Clever Does", Barron's, Saturday, April 14, 2012
  10. ^ http://programinfo.itt-tech.edu/cost.pdf
  11. ^ http://www.itt-tech.edu/credits.pdf
  12. ^ Lopez, Ricardo. "Regulator accuses ITT for-profit college chain of predatory lending". latimes.com. Retrieved 2014-02-27. 
  13. ^ http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/
  14. ^ http://www.huffingtonpost.com/davidhalperin/state-attorneys-general-o_b_4677145.html
  15. ^ http://www.wsj.com/articles/SB10001424052702303819704579318872286744010
  16. ^ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10317593-390053-429448&type=sect&TabIndex=2&dcn=0001193125-14-418646&nav=1&src=Yahoo
  17. ^ http://www.counterpunch.org/2010/03/01/who-runs-the-university-of-california/
  18. ^ http://articles.latimes.com/2010/jul/14/business/la-fi-hiltzik-column-20100714
  19. ^ "U.S. sues college chain ITT over loans". USA Today. February 26, 2014. Retrieved February 27, 2014. 
  20. ^ http://www.ibj.com/articles/48892-itt-educational-ceo-signals-resignation-amid-stock-freefall-federal-scrutiny
  21. ^ http://www.law360.com/articles/593666/itt-auditor-walks-away-amid-ceo-search
  22. ^ http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10343384-859-6287&type=sect&TabIndex=2&dcn=0000922475-14-000046&nav=1&src=Yahoo
  23. ^ http://www.law360.com/articles/593666/itt-auditor-walks-away-amid-ceo-search
  24. ^ http://www.streetinsider.com/Corporate+News/ITT+Educational+Services+(ESI)+Enters+$100M+Term+Loan+Agreement+with+Cerberus+Business/10073284.html
  25. ^ ITT Technical Institute FAQ
  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://www.sueeasy.com/class_action_detail.php?case_id=413
  35. ^ http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/

External links[edit]