http://blog.ed.gov/2016/08/increased-oversight-of-itt-and-the-impact-on-students/
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8K Filing:
http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=11111269&type=PDF&symbol=ESI&companyName=ITT+Educational+Services+Inc.&formType=8-K&dateFiled=2016-08-26
A mention in this Inside Higher Ed blog:
https://www.insidehighered.com/blogs/confessions-community-college-dean/friday-fragments-94
Inside Higher Ed Article:
https://www.insidehighered.com/news/2016/08/26/education-department-bars-itt-tech-enrolling-new-students-federal-aid
ITT shares school codes across the country. Indianapolis campuses/online and 130 or so other campuses all have one school code. Washington state schools share a school code. Daniel Webster has a school code and a separate accrediting body. The DOE requirements apply to all 130 or so campuses. Cousin itt clearly doesn't have the cash or the ability to borrow that amount of money. All but done.
The guy from China has to be questioning his ability invest wisely.
All campuses.
This is exactly the same way they took down Corinthian Colleges. Look for the DOE and ECMC to make a deal to buy up ITT for pennies and do the same thing as they did to Everest and WyoTech. ECMC is the sweetheart of the Obama administration and they are in big time with Hillary Clinton through the Podesta Group and huge donations to the Clinton Foundation. Don't count on keeping your job because they will close 75% of the schools.
I'm confused ... Does this apply to all campuses or just Indy and Spokane?
I expect ITT to fold their tents within the next few months. This seems like the final nail in the coffin.
It's not just the additional surety that's going to crush them. They also have to disperse student loan money themselves for any continuing students and then wait to be reimbursed by the DOE. I'm not sure what that would even look like. So for the fall start continuing students whose tuition would be covered by Title IV funding, ITT Tech would have to use its own cash to pay those tuition bills, essentially moving money from one side of its ledger to another, and then await the DOE reimbursement? So for a narrow window of time, right as they're trying to gather this additional surely money, they will have a massive blow to their balance sheet due to the absence of anticipated DOE Title IV funding.
It's hard to believe that the DOE expects this to do anything other than crush the company before the end of the calendar year. They won't survive the fall semester.
The DoE letter to ESI today:
https://studentaid.ed.gov/sa/sites/default/files/itt-notification-aug-25.pdf
ITT is now on HCM-2 and can't enroll new students. Those are things the company could deal with. What's going to cause them to close is the requirement to post an additional 152 million in sureties in the next 30 days.
Y'all need to be looking for new jobs and don't wait for anything. Finding new employment should be your #1 priority. It's over. Expect 80% of you to be laid off within the next week.
It was brutal when we went through it with Everest/CCI.
-Signed a former employee of CCI
http://www.nasdaq.com/article/us-government-cuts-off-new-funding-for-itt-tech-20160825-00777
Correction - the trading halt is on NYSE (may also be reported on NASDAQ). Effect is the same though!
Federal Aid news entry at:
https://studentaid.ed.gov/sa/about/announcements/itt
Trading halted on NASDAQ at 14:26:29 - T1 - Trading halted pending news.