Secretary of Education Arne Duncan said that Corinthian Colleges, which declared bankruptcy last month, "will not be the last domino to fall" in the for-profit college space. http://www.thestreet.com/story/13203456/1/department-of-educations-special-master-to-help-borrowers-with-loans-from-corinthian-and-beyond.html?puc=yahoo&cm_ven=YAHOO
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What portion of ITT's graduates actually land jobs allowing them to pay back $1000 a month or higher for over a decade? If and when taxpayers start protesting about the extremely high amount of income based students coming from all these schools which is still outside the metrics they are being punished for now - all that can do is hurt them even more. The BALD FACT is that ITT's programs cost 10 times what they are worth and the vast majority of students are going to end up saddled for life with extreme debt because the school failed to give them adequate training and connections to find jobs. The school has already been caught front loading their classrooms with whoever they can get and piling on as many loans as they can. It is inevitable that some kind of clawback with kick in within the next 2 years similar to Corinthian's defense to repayment and once that happens this company stands to lose billions.
As of July 1, for-profit schools and certificate programs will have to prove to the U.S. Education Department that graduates will be able to repay their student loans. -- http://www.cnbc.com/id/102799374
DoED's MFIC Arne Duncan and the notorious Ted Mitchell are no better than the Bush appointees for being complicit in the destruction of democracy in education. Will Mitchell land a job at Laureate after this election?