1973 --everything changed (perhaps beginning of the ITT "downhill climb")

Very complete/interesting history here (.......including their European schools):

http://www.fundinguniverse.com/company-histories/itt-educational-services-inc-history/

The year 1973 marked an important milestone in ITT's growth. That year, the company became a part of the Federal College-based tuition grant and loan programs, which had until then been reserved only for traditional colleges and universities. Acceptance into these programs allowed ITT to offer its students a full range of college loan and grant programs. This meant that attending an ITT school became a viable option for a new pool of students--those who needed federal financial aid to pay for schooling.

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They should revert to not accepting any title IV funds (like, refusing candy)...they were quite successful without that alcohol...students who went then really wanted an education.

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ITT Educational Services actually had issues before Modany.

"Revenue, net income, and enrollment increased again in 2004 despite a very public investigation into the company's records regarding student attendance, grades, and job placement figures. In February 2004, federal investigators working for the U.S. Department of Justice raided company headquarters and ten of its campuses. At that time, the company disclosed that the Securities and Exchange Commission as well as the California Attorney General had been investigating t he company since October 2002. In addition, shareholders filed suit against the company, claiming that it falsified its records in order t o receive student financial aid from the federal government--aid that made up nearly two-thirds of the company's revenue--and that company officials had financially benefited from ITT Educational's inflated stock price by selling shares between 2002 and 2004. President and ch ief operating officer Omer Waddles stepped down amid the investigation and was replaced by Kevin M. Modany."

http://www.referenceforbusiness.com/history2/86/ITT-Educational-Services-Inc.html#ixzz4FRfvkblK

1994 was another key year:

"In December 1994, ITT's parent company, ITT Corporation, spun off 17 percent of ITT Educational in a $20 million initial public offering, still retaining majority ownership of 83 percent. The goal of the spin-off, according to ITT Educational President Rene Champagne, was to raise the company's visibility among investors. 'The main reason we decided to do the public stock offering was that we were a moderate sized company in a $23 billion-a-year corporation. We were getting lost in the corporate complex,' he said in a June 1995 interview with the Indianapolis Star. 'Most people in the investment community were not aware of who we were.' Less than a year after the spin-off, ITT Corporation itself announced a sweeping reorganization. During the restructuring, the giant conglomerate split into three publicly held companies. ITT Educational was a part of the new public company that continued to be called ITT Corporation."

Thread regarding ITT Educational Services Inc. layoffs

1973 --everything changed (perhaps beginning of the ITT "downhill climb")

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