Thread regarding Corinthian Colleges Inc. layoffs

Don't feel bad, ITT Tech just got gutted, no more federal aid for you. Devry is next and what TT hey learn from the fight against these three,

They will take out the ultimate scam, the University of Phoenix. Can't wait to watch these s holes implode.

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Post ID: @OP+wot205D

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What about SNHU?

It is another scam.

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Post ID: @cNtch+wot205D

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17153 and 17135 Itt is also in trouble. I post the source. There cornithian colleges, Itt and couple other are in trouble right now.

By

Michael Calia and

Stephanie Gleason

Updated July 2, 2014 6:42 p.m. ET

ITT Educational Services Inc., ESI -2.97% a big operator of for-profit schools, Wednesday warned it could face restricted funding from the U.S. government for failing to file timely financial reports.

ITT, which had 57,000 students as of March, said it might be subject to heightened scrutiny and loss of federal funding because it missed a Monday deadline to file its 2013 financial statement and a compliance audit with the Department of Education.

The company has been in "ongoing communication with the Department" of Education, which recognized the documents would be delayed, ITT spokeswoman Nicole Elam said. ITT operates more than 130 campuses and runs Daniel Webster College in Nashua, N.H.

Related

For-Profit Colleges Face Test From Washington

Corinthian Colleges Warns of Possible Shutdown

Shares of ITT fell 3% to $16.36 on Wednesday. The stock is down more than 50% so far this year.

The news comes as rival Corinthian Colleges Inc. COCO -3.67%—which warned last month it was on the brink of collapse—works toward an agreement with the U.S. government to facilitate the sale or winding down of its campuses.

Corinthian Colleges and the Department of Education missed a Tuesday deadline to agree on an operating plan for the troubled for-profit educator, although both parties said a deal could be reached within days.

The crisis at Corinthian began when the Department of Education put a 21-day hold on the school's access to federal funding, following several attempts to get information from it regarding recruitment and marketing methods.

The industry has been under increased pressure of late, as several companies face federal and state probes into issues such as marketing and recruiting methods, as well as whether they push students into high-cost loans. The Obama administration is expected to toughen rules that could end federal aid to for-profit schools whose students have high default rates or have accumulated heavy debt loads.

Corinthian receives $1.4 billion a year in federal financial aid and said it couldn't survive a delay. The company and the Department of Education are working on finalizing a plan either to sell or wind down all its 107 schools in the next six months.

Recent action by the Department of Education should indicate to investors that "the department is prepared to be incredibly strict with their enforcement actions," Wells Fargo Securities Senior Analyst Trace Urdan said on Wednesday.

However, ITT appears to be in a stronger position financially than Corinthian, Mr. Urdan said. If the Department of Education issued the same 21-day hold on ITT's federal funding, "it wouldn't precipitate the crisis you saw with Corinthian," he added.

Michael Tarkan, an analyst with Compass Point Research & Trading, in Washington, added that while the schools are in different financial positions "the language in (ITT's) filing this morning suggests additional oversight and sanctions could be forthcoming, and investors should take these issues more seriously now given what we have seen from Corinthian."

ITT said in a regulatory filing Wednesday that its delay is the result of having to restate certain procedures on how it accounts for the liabilities and assets of a private student-loan program. It is working to complete the financial statements by July 31.

For missing the deadline, the company said, the Department of Education could place its funding under monitoring, seek a letter of credit or revoke its eligibility for Title-IV federal student aid.

The disclosure marks the latest development regarding ITT's student-lending practices. The federal Consumer Financial Protection Bureau sued ITT in February, claiming the company compelled students to take out high-interest loans.

The Department of Education couldn't be reached for comment.

—Melissa Korn and Alan Zibel contributed to this article.

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Post ID: @1VPE+wot205D

Anony 17148, it's the Obama administration that has an agenda on for-profit schools.

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Post ID: @1Hz0+wot205D

Carmel-based ITT Educational Services Inc., an operator of for-profit colleges, said the U.S. Department of Education may limit its access to student-loan funds because the company is unable to provide audited financial statements.

ITT wasn’t able to provide audited consolidated statements for 2013 or a compliance audit to the agency by June 30, according to a regulatory filing made Wednesday.

Company spokeswoman Nicole Elam said the reason for the financial-statement delay is that ITT is awaiting accounting guidance from the Securities and Exchange Commission, which it requested in March. She noted that prior company filings had disclosed the possibility that the request would cause ITT not to meet the deadline.

ITT and other for-profit educators have struggled recently while under heavy scrutiny from the federal government over lending practices.

The U.S. Consumer Financial Protection Bureau focused on the student loan programs in a February lawsuit it filed against ITT, accusing the company of predatory lending practices. ITT has sharply criticized the claims in the lawsuit and asked a federal judge to dismiss it.

That unresolved issue has delayed an audit of ITT's 2013 financial results and caused the company not to report complete first-quarter earnings information in May.

ITT’s stock drooped more than 2 percent in early-morning trading Tuesday before rebounding. Shares were up 2 cents, to $16.88 each, late in the morning. The stock has lost more than 50 percent of its value since the beginning of the year.

ITT has more than 140 campuses in 35 states, including six in Indiana.

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Post ID: @10yQ+wot205D

ITT is not broke. They can make payroll.

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Post ID: @1Gei+wot205D

MAY LOSE IT: http://online.wsj.com/articles/corinthian-u-s-expect-to-reach-deal-after-missing-deadline-1404303861

don't put the cart before the horse

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Post ID: @1ILE+wot205D

Get your facts straight. ITT has not lost federal funding. They don't offer Genesis type loans either. They offer scholarship funds which takes tuition to HALF the amount of most private schools. Comparing them to Everest or Wyotech is like comparing apples and oranges. How do I know this? My adult son attends there and I support his decision and applaud them for not wanting to be like Everest. I used to work for Everest so you can bet I was with him when he met with ITT.

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Post ID: @jey+wot205D

Neither of those sites is "heating up" and because some yahoo posts what he thinks will happen does not make it so. No one has backed up anything with proof or news articles.

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Post ID: @FLN+wot205D

Perhaps it is the DoE that has an agenda against all for profit schools

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Post ID: @bir+wot205D

Check the ITT Tech thread on this site. They are discussing it there. The University of Phoenix thread is also heating up.

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Post ID: @OCX+wot205D

Initech is still alive and well. What is the source here?

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Post ID: @Vmv+wot205D

I cannot find any news on this. Where are you getting your information?

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Post ID: @eLn+wot205D

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