I think they will be next, I know we are different but I just have a feelign they will be facing BK very soon
16 replies (most recent on top)
Show me where ITT lost a predatory recruiting lawsuit. Then I will consider it truth.
I really don't care.
Anonymous22704- Just because ITT has a case doesn't suggest that CCi is better.
Anonymous22661: You may need to rethink your statement about predatory practices. CCI isn't being sued by the CFPB
http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/
Who cares what happens to ITT? This board is for CCI employees. You understand ITT is NOT a CCI school right?
22671- I'm not one of those people who sit around and blame Obama for everything. Nor do I care. I really do not care. Why are you asking me?
Agree with 22661 on the counter-cyclical nature of the for-profit sector. When the economy suffers, potential students in the career-college target demographic are often those who have the most challeges getting/staying employed. Going to school to oestensibly gain new skills to improve their lives is very attractive. When the economy is better - as it is now - there are fewer potential students because more of them are employed and not necessarily looking to change. Schools that expanded and acquired more real estate, staff, etc. in/around 2008/2009 when things were good are now scrambling to reduce costs. Combined with increased gov't scrutiny and a flood of (generally deserved)bad press, a large part of the industry is struggling. 22663 - yes, the "government dolls out money regardless of the economic cycle", but it is still on a per student basis. Fewer students = less revenue + high costs (real estate, staff, etc) = problems......
Ask yourself that question - I do not know why you want to read this thread? You have the answer.
Why would I care about ITT?
So, what happens to ITT when Obama says "no more" and they lose 80% of their revenues (assuming that folks who get gov loans will not be able or willing to find alternate sources of funding)
22663- You are misinformed. Schools only get money per student. If enrollment goes down (which it does during good economies) then the school gets less money. Federal loans are based on student need. No students, no money. This is an actual fact. All of these are.
they will be just fine
Melting down today? Ha! How about down over 50% from January 1, 2014.
It's all dandy if you assume that the market is led by the invisible hand. However, once the government gets involved and start shelling out money that represents 80% of your revenue things change. For starters, that changes your 'boom-and-bust' dynamics, because government dolls out money regardless of the economic cycle. Agreed on the tutoring statement, yet, it's probably less efficient than students would like it to be. So, in summary, yes - there is a comparison between CCI and ITT - it's called government involvement. Government launched our stocks into the stratosphere and now they are bringing it down as well.
good post - i agree 100% with 22661
When the economy tanks, career colleges do really well. When the economy improves, career colleges don't do as well. It's the ebb and flow of the for profit world. ITT tech will not likely be in the same position. Their practices aren't as predatory and students have to pass a basic assessment of students. In addition, they don't make students sign away their need for tutoring - they actually pay instructors to tutor students when a student needs it. There's more student support overall, and the class work is fairly rigorous. Is it perfect? No, likely not. Is it CCI? Nope. Not even a comparison.