The education quality from ITT is terrible but what really screws both the school and the students is the extreme debt burden. I doubt ITT has ever graduated a student who had the full debt load and managed to find a job to pay off all the predatory loans in the expected 10 year timeframe. What job out there is hiring entry level people at wages high enough to afford $2000-3000 a month cost of living plus another $1500 a month in loan payments? When the gainful employment rule kicks in, this school is toast.
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Thats why I can't see how the stock isn't in the 2's yet (or lower). This company is toast. Their entire structure from bottom to top was always about the grift and maxing out loans. Nobody graduating is EVER going to be able to pay the 10 year rate without mooching off parents for years and having 2/3 of it paid off before they graduate. Their degree and education is laughed at by employers. None of these long term trends are going to change and even if they did, they have 20 years worth of bad loans that will continue to drag down this company unless wiped or crammed down to reasonable levels.
Earnings and cash flow look like a company that dead on arrival.............................http://www.capitalcube.com/blog/index.php/itt-educational-services-inc-earnings-q2-2015/
Phewy: High-Debt Load, Outdated Equipment, Corrupt Management Team and an Outdated Curriculum. This just plain wreaks. Barf!!!
@Anonymous147112, you are probably right (not in this century).
When was that? Definitely not in this century.
The old ITT Tech used to have lots of successful grads...but those stories are becoming more like outliers than the norm.