ITT College To Cease All Student Enrollment Because of the Title IV Funding Change!

For-profit college chain ITT Tech ceases all student enrollment
    
USA TODAY  James Briggs 1 hr ago
The move, prominently announced on ITT's website, goes beyond the U.S. Department of Education's decision last week to ban ITT from enrolling new students who depended on federal loans to pay for classes. Although the majority of ITT's students receive federal aid, the for-profit college chain could have continued accepting new students outside of the government's Title IV program.

ITT Educational Services Inc., based in Carmel, Ind., did not respond to a request for comment. Company executives have yet to publicly respond to the Education Department's moves aside from a Securities and Exchange Commission filing in which ITT said it was "evaluating these additional sanctions and requirements, as well as all options available to it."

Trace Urdan, a Credit Suisse analyst who follows ITT, said the company's decision to stop accepting new students doesn't necessarily offer any clues about ITT's next move. "The market for students that enroll without Title IV is essentially non-existent," Urdan wrote in an email. "The expense of processing applications only to have them cancel once they learn (they are) Title IV ineligible is not worthwhile."

ITT's future has been in question since the Education Department announced its sanctions amid an Obama administration crackdown on for-profit colleges. The SEC, Consumer Financial Protection Bureau and more than a dozen states are investigating ITT over its financial performance, marketing, recruiting and job placement numbers.

In addition to the Education Department's sanctions, two states had moved to block students from enrolling at ITT. California banned new enrollment at ITT's 15 campuses there and Wisconsin blocked enrollment at the company's two campuses in that state. ITT had 137 campuses across 39 states at the end of June, according to its most recent quarterly earnings filing.

Several analysts have said that federal sanctions, especially a new requirement that ITT increase its reserves from $94.4 million to $247.3 million, will probably force the company to close.

ITT has more than 40,000 students who remain eligible for federal aid. Should ITT close, the Education Department has suggested it will forgive the federal loans of existing students.  Former ITT students who have graduated or dropped out also might be able to get their loans discharged, the Education Department has said.

ITT's stock price continued to plunge Monday, dropping 19% to 44 cents per share. ITT shares traded at more than $2 before the Education Department's announcement Thursday.
http://www.msn.com/en-us/money/companies/for-profit-college-chain-itt-tech-ceases-all-student-enrollment/ar-AAifn4P?OCID=ansmsnnews11

veya_victaous wrote:cause most of the colleges are scammers that give out a diploma not worth the paper it is printed on.

all they do is propagate under trained unqualified subpar 'professionals' to cause future problems since they were never trained properly in the first place.