“From the collapse of Corinthian to the fraudulent behavior of ITT Tech, we have seen growing evidence of the widespread deception and reprehensible practices conducted by bad actors in the for-profit college industry - http://www.washingtonpost.com/blogs/wonkblog/wp/2015/06/25/for-profit-colleges-aggressively-target-veterans-for-enrollment-these-democrats-want-it-to-stop/
4 replies (most recent on top)
I went to ITT, I do not believe by a WIIIIIIIIIIDE margin that they are capable of doing anything non profit. Their entire system from the ground up has always been getting as many people as possible saddled with as many loans as possible and then all of their responsibility ends. Even if they switched tomorrow, they're a 1000 ton juggernaut with 2 decades of fraud carrying them the same direction. People will be defaulting on ITT loans for the next decade no matter what they do today.
@Anonymous110455, you are right about the predatory nature of these schools, but I'm not sure about your timetable. These people are very clever. Some schools have already morphed into "non-profit" colleges. Others have been bought and sold for a bargain (and hundreds of millions in cash flow from the US government).
You keep saying that like it means something. Their enrollments are down, their true default rates are probably way higher than anything reported. They are still not well regarded by employers and the raw debt load they have been saddling students with for decades is many times what any will ever actually pay off. They are not going to magically start hiring professors instead of part time adjuncts and every campus has extreme turnover with admissions or career services since they all see it is a total joke the first month or two working there. At most I see these 'power players' delaying the inevitable for another year or so while they offload their stock - in the long run this place has a losing strategy and was built on this losing strategy and ponzi scheme of debt.
ITT Tech still ha stwo major power players (Vin Weber, Richard Blum) who may be able to bail ESI out.