Skip to main content

For-Profit ITT Expects New Student Enrollment Will Drop By Up To 60% This Fall

By

Facing multiple lawsuits, the possible loss of its accreditation (from an accrediting body that is in trouble on its own), and demands from federal regulators that it have enough cash on hand to cover losses in case things do collapse, ITT Educational Services now says it will likely see new student enrollment drop by up to 60% this year.

ITT dropped this little bit of bad news in an SEC filing this morning, saying that all the financial demands on the for-profit education chain have forced it to make cuts to its marketing and recruitment budgets. That means fewer ads for ITT Tech during Maury and fewer recruiters trying to convince students to pay the school’s relatively high tuition.

As a result, projects ITT, new student enrollment will be down 45% to 60% between now and the end of the year, compared to the same time period in 2015.

“While we expect these modifications to result in an increase to our operating income and cash flow in the short-term, continued enrollment declines would have a negative long-term impact on our revenue, cash flows and financial condition,” acknowledges the school. In other words: Slashing these budgets saves money right now, but could really hurt the company in the long run.

ITT has teetering in this tight spot for more than a year. It revealed in 2015 that it was the subject of a federal fraud investigation. The Dept. of Education then placed restrictions on ITT’s access to student aid after the school failed to account for millions in federal funds.

The educator has been sued by the Consumer Financial Protection Bureau over its loan practices, nursing students who say they were misled about the school, Massachusetts for allegedly harassing students, and by a whistleblower who alleges that the school deceived applicants about the education they would receive and their job prospects.

Meanwhile, the school’s accrediting body — the Accrediting Council for Independent Colleges and Schools (ACICS) — is currently deciding whether or not to pull ITT’s accreditation, which could severely hamper its ability to operate. If that weren’t bad enough, a Dept. of Education advisory panel recently recommended revoking the agency’s recognition of ACICS, which would put a number of for-profit schools at risk.

[via Buzzfeed News]


by Chris Morran via Consumerist

Comments

Post a Comment

Popular posts from this blog

Chrysler Deletes Its Dating Apps, Decides To Remain Single For Now

By
They say you can’t have a healthy relationship until you’re happy with yourself. That appears to be the new mantra for Fiat Chrysler: After several attempts to woo General Motors and more recently Volkswagen , the carmaker’s top executive says he plans to ditch his lovelorn ways to concentrate on his company’s bottom line.  Bloomberg reports that CEO Sergio Marchionne has turned his focus to eliminating FCA’s debt rather than eliminating its single status. Marchionne has set a goal of erasing FCA’s debt by 2019, the same year he’s set to retire. To do that, he says the company needs to do a little work on itself. “We need to be very careful that we don’t start unrealistic dreams about consolidation as we are on our way to achieve historically important results and a debt-free position,” Marchionne told investors at the carmaker’s annual meeting in Amsterdam, as reported by Bloomberg. “We are not at a point of time to discuss any alliance.” Yes, you heard that right: The man w...
Post a Comment
Read more

Study Claims 43% Of “Wild” Salmon In Stores & Restaurants Isn’t Wild At All

By
That wild salmon entrée calling to you from the menu at dinner might not be all it’s advertised. In fact a new study released Wednesday found evidence of mislabeling in nearly half of all salmon sold in restaurants and grocery stores.  The study [ PDF ] from international environmental advocacy group, Oceana, analyzed 82 salmon samples from restaurants and grocery stores, finding that 43% of the products were mislabeled. DNA testing confirmed that 69% of the mislabeled product consisted of farmed Atlantic salmon being sold as wild-caught product. According to the report, consumers satisfying their salmon craving in restaurants are misled about 67% of the time, while those who buy their seafood in a grocery store are misled 20% of the time. “Americans might love salmon, but as our study reveals, they may be falling victim to a bait and switch,” Beth Lowell, senior campaign director at Oceana, said . “When consumers opt for wild-caught U.S. salmon, they don’t expect to get a far...
Post a Comment
Read more

Introduction to Biology (IX Biology Notes Chapter 01)

By
Science: Our universe operates under certain principles. For understanding of these principles, the experiments are done and observations are made; on the basis of which logical conclusions are drawn. Such a study is called "Science". In brief science is the knowledge based on experiments and observations. Biology: The Scientific study of living organisms is called Biology. The word biology is derived from two Greek words "bios" meaning life and "logos" meaning thought, discourse, reasoning or study. It means that all aspects of life and every type of living organism are discussed in biology. Branches of Biology: Biology is divided into following branches: Morphology The study of form and structure of living organisms is called morphology. It can be further divided into following two parts: 1. The study of external parts of living organism is called external morphology. 2. The study of internal parts of living organism is calle...
Post a Comment
Read more