Does anyone actually know the state of this company's internal financials? They have obviously been cooking the books for years, but I seriously doubt very many people who graduated in the last 10 years of this place's graft have actually been paying the $1000+ a month they would need to in order to remain current. The toxic blend of private loans ITT forced everyone to sign under threats of being dropped mean consolidation and income based payments are not really on the table either, so most likely their real default rates are going to be in the 60-70% range. If and when the department of education formalizes the defense to repayment method, there will be tens of thousands of former students lining up to file and get the loans wiped. The department of education has announced they intend to stick the school with those failed loans, which would put ITT on the hook for billions. Their stock is also worthless so I can't see much real value there, and while they have some real estate it is basically all collateral for massive loans charging interest and undoubtedly their enrollment has declined by a lot. They are facing dozens of lawsuits including at least 2 from the federal government, plus half the states AG have sued them as well. There is increasing public scrutiny and resources from former students warning away new people, from every angle I can see it appears this place must be hemorrhaging cash at a furious rate, so when is this steaming pile of turd finally going to admit it?
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3016 - Ultimately it will be the taxpayers on the hook since very few people got jobs and could afford to pay anything back. Every day that goes by this company is committing fraud and embezzlement from the taxpayers while our corrupt legal system gives them 2 thumbs up and a throbbing boner under their robes to go with it.
Closing is inevitable. However, the crooks who run this mess are getting richer everyday that goes by. At the end of day, they will get out this mess free of charge and enjoy their money laughing at all government agencies and local AG's who were not able to do anything to them. In the meantime, all the poor students are left with all of their debt they got from this fraud.
Even if they were taken at face value, this company has what, maybe $200 million in cash with well over 100 million in loans and if the defense to repayment does go forward as proposed they could easily be on the hook for BILLIONS in past loans. It wouldn't even take all that many of their former students filling to hit them for a billion.
Very few people know the financials, but they cannot be good...........................https://www.linkedin.com/pulse/itt-techesi-faces-monumental-troubles-dahn-shaulis?trk=mp-author-card..................Deloitte auditors must be * bricks looking at this ESI mess and the University of Phoenix...............................https://www.linkedin.com/pulse/could-itt-techs-short-term-gain-torpedo-deloitte-dahn-shaulis?trk=mp-author-card