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ITT ranks fourth in terms of alumni reporting rewarding careers only after its sister ITT Technical Institute schools in San Antonio, West Houston and San Diego<ref name="McClay"/>
ITT ranks fourth in terms of alumni reporting rewarding careers only after its sister ITT Technical Institute schools in San Antonio, West Houston and San Diego<ref name="McClay"/>

ITT Tech has a caution flag from the [[Veterans Administration]] because its accreditor is under review and because it is under heightened cash monitoring. <ref>https://www.vets.gov/gi-bill-comparison-tool/institutions/search utf8=%E2%9C%93&source=home&military_status=veteran&spouse_active_duty=no&gi_bill_chapter=33&cumulative_service=1.0&enlistment_service=3&consecutive_service=0.8&elig_for_post_gi_bill=no&number_of_dependents=0&online_classes=no&institution_search=ITT+Tech+&commit=Search+Schools</ref>


==Federal raids, investigations, lawsuits and complaints==
==Federal raids, investigations, lawsuits and complaints==

Revision as of 14:37, 29 July 2016

ITT Technical Institute
MottoEducation for the Future
TypeFor-Profit
Established1969 (1969)
PresidentEugene W. Feichtner[1][2]
Students40,015 [3]
Location
Carmel
,
Indiana
,
United States
Campus LocationsApproximately 130 campuses
AffiliationsITT Educational Services, Inc. (1994-2016)
ITT Corporation (1965-1994)
Websiteitt-tech.edu
ITT Tech Canton, Michigan campus

ITT Technical Institute (often shortened to ITT Tech), is a for-profit technical institute with approximately 130 campuses in 38 states of the United States.[4]

ITT Tech is owned and operated by ITT Educational Services, Inc., a publicly traded company headquartered in Carmel, Indiana.[5] The company also owns and operates Breckinridge School of Nursing and Health Sciences schools.[6]

Since 1969, ITT Tech has educated over 1 million students. Approximately 12,000 employers have hired ITT Tech graduates in the past two years.[7]

The U.S. Bureau of Labor Statistics predicts that STEM (science, technology, engineering and mathematics) jobs are predicted to grow to more than 9 million between 2012 and 2022. Approximately 88 percent of all ITT Tech students currently enrolled are seeking a STEM degree.[8]

More than 900 ITT Technical Institute students and graduates recently submitted letters of support commending the education and services they've received from ITT Tech campuses across the country confirming that they received a quality education and are taking advantage of the academic and support services ITT campuses have to offer.[7] ITT Technical Institute charges among the highest tuition in the industry. It also has the industry's highest rate of loans that go into default within two years of attendance.[9] In 2014, the tuition for attending an ITT Tech campus ranged from $45,000 to $85,000.[10]

Early Career Pay for associate degrees graduates for ITT Tech is $42,400 while Mid-Career Pay is $66,500.[11]

According to ITT Tech literature, credits earned at ITT Tech are unlikely to transfer to other colleges.[12]

History

ITT Tech was founded in 1946 as Educational Services, Inc. and has been headquartered in Carmel, Indiana, since 1969. From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of ITT Corporation (as "ITT/ESI"). By 1986, all institutions became known by the common name "ITT Technical Institute". By 1999, ITT Corp. (which had merged with Starwood Hotels & Resorts Worldwide the year before) divested itself completely of ITT Tech's shares but the schools still use the "ITT" name under license. It operates over 130 ITT Technical Institutes across the US, which primarily provide career-focused degree programs to approximately 45,000 students.

In 2013, ESI began operating public charter schools in three cities: Indianapolis, Tempe, and Troy, Michigan.[13] In charter documents, the company referred to potential students as "educational have nots." [14]

In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3 million shares of ITT Educational Services stock. [15]

In July 2016, ESI reported that enrollment was projected to drop 30% to 40% from 2015 to 2016. [16]

ITT Tech Warriors

In 2015, a group of students and former students of ITT Tech formed the ITT Tech Warriors to fight for student loan relief. Their goal is "to raise awareness" about the injustices that ITT Tech has committed "...against veterans, students, tax payers and government." [17]

Academics

ITT Tech students are characterized as "older and balancing family obligations with underemployment."[18]

The programs employ traditional, applied and adult-learning pedagogies and are delivered through traditional, accelerated and distance methodologies in a learner-centered environment of mutual respect.[19]

ITT Tech offers associate, bachelor's, and master's (business-only, online) degrees. As of December 31, 2015, the ITT Technical Institutes were offering 49 education programs in various fields of study.[20]

At the vast majority of campuses, the academic schedule is organized on the basis of four 12-week academic quarters in a calendar year with new students beginning at the start of each academic quarter. Using that calendar, students taking a full course load can complete associate degree programs in seven or eight academic quarters, bachelor's degree programs in 14 or 15 academic quarters and a master's degree program in seven academic quarters.[20]

Depending on student enrollment, class sessions at the vast majority of ITT Technical Institute campuses are generally available during the day and evening. The courses for education programs that are taught online over the Internet are delivered through an asynchronous learning network and have a prescribed schedule for completion of the coursework. At the vast majority of ITT Technical Institute campuses, the class schedule for education program residence courses and the coursework completion schedule for education program online courses generally provide students with the flexibility to maintain employment concurrently with their studies. Based on student surveys, they believe that a majority of ITT Technical Institute students work at least part-time during their programs of study. A significant portion of classes involve practical study in a lab environment.[20]

Accreditation

ITT Tech is nationally accredited by the Accrediting Council for Independent Colleges and Schools (ACICS). According to ITT Educational Services' last annual report, 31 campuses and more than 400 programs are not meeting ACICS standards for student retention.[21] Per the ITT Tech web site, "it is unlikely that any credits earned at an ITT Technical Institute will be transferable to or accepted by any institution other than an ITT Technical Institute."[19] In April 2016, ACICS issues the company a "show cause" order to request information establishing why the accreditor should continue to accredit the institution.[22]

ACICS itself has been criticized by a dozen states' Attorneys General for not providing proper oversight.[23]

ACICS, ITT Tech's accreditor, is in limbo after a US Department of Education committee voted against its power to accredit. A final decision will be presented later in 2016.[24][25]

Rankings

ITT Tech Seattle ranked top 2-Year College That Actually Pays Off![11]

ITT ranks fourth in terms of alumni reporting rewarding careers only after its sister ITT Technical Institute schools in San Antonio, West Houston and San Diego[11]

ITT Tech has a caution flag from the Veterans Administration because its accreditor is under review and because it is under heightened cash monitoring. [26]

Federal raids, investigations, lawsuits and complaints

In August 1998, 15 former students alleged misrepresentation, fraud and concealment by ITT arising out of their recruitment and education at ITT campuses. In September 1998, ITT settled all of the claims.[27]

On February 25, 2004, federal agents raided the company's headquarters and ten of its campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California and Oregon.[28] The investigation negatively affected the company's stock and triggered several class action lawsuits by investors.[29][30] CEO Omer Waddles resigned during the investigation and was replaced by Kevin M. Modany. [31]

In October 2005, ITT agreed to pay $730,000 to settle a lawsuit with California in which employees alleged that it inflated students' grade point averages so they qualified for more financial aid from the State of California.[32]

An investigation by WGBA-TV (NBC26, Green Bay, Wisconsin) found evidence of widespread grade inflation. In one instance, a student got 100% on a computer forensics assignment by emailing the professor a noodle recipe. The station believes this to be a way to increase federal student aid funding.[33]

In 2013, a complaint was filed against ESI and two ESI executive officers in US District Court for the Southern District of New York regarding securities. The Massachusetts Laborers' Annuity Fund filed a similar complaint and the cases were consolidated. The Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund were the lead plaintiffs.[34] Students continue to allege that private loans with JP Morgan Chase and other banks are predatory.[35] In 2013 USA Today listed more than 50 ITT campuses as "red flag" schools because their student loan default rates were higher than their graduation rates.[36]

On February 26, 2014, the Consumer Finance Protection Bureau (CFPB) sued ITT, alleging that they used high-pressure tactics to coerce students into high-interest private loans that were likely to end in default.[35][37] ESI is also being investigated by at least a dozen state attorneys general.[34][38][39] On October 19, 2015, the U.S. Department of Education announced that because of the company's failure "to meet its fiduciary obligations," it was being placed under "heightened cash monitoring".[40]

According to a July 2014 Senate Health, Education, Labor, and Pensions (HELP) committee report, 57% of ITT programs would fail the Department of Education's proposed Gainful Employment rule.[41]

In a 2015 federal whistleblower lawsuit, a former ITT Tech dean of academic affairs alleged that the company (1) directed recruiters to use coercive tactics to pressure students into enrolling, (2)admitted students who were unable to succeed at the school, (3) unlawfully paid sales commissions to recruiters, and (4) lied to students about their financial obligations and transferability of ITT credits to other schools, and about the jobs students could expect to get after graduating.[42]

In 2015, The California Department of Veterans Affairs (CalVet)temporarily ordered ITT Tech to stop enrolling new or returning students who fund their educations with GI Bill benefits.[43]

In 2015, CEO Kevin Modany and CFO Daniel Fitzpatrick were charged with fraud by the Securities and Exchange Commission [44]

In 2016, Massachusetts Attorney General Maura Healey sued ITT Educational Services for allegedly "misleading and harassing students." [45][46] Breckinridge nurses also sued ITT Education for fraud.[47]

The following states issued subpoenas or Civil Investigative Demands against ITT Tech between the beginning of 2004 and the end of May 2014, under the authority of their consumer protection statutes: Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Tennessee and Washington.[48]

References

  1. ^ "Corporate Governance - Management & Directors". ITT Education Services. Retrieved 2010-04-16.
  2. ^ "Eugene Feichtner: Executive Profile & Biography". BusinessWeek. Retrieved 2010-04-16. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  3. ^ http://finance.yahoo.com/news/itt-educational-services-inc-reports-103000451.html
  4. ^ ITT Educational Service, Inc. 10-k Annual Report Year-ending December 31, 2015
  5. ^ "FAQ." ITT Technical Institute. Retrieved on November 23, 2011. "Our principal executive offices are located at: ITT Educational Services, Inc. 13000 North Meridian Street, Carmel, Indiana 46032"
  6. ^ http://www.breckinridgenursing.com/campus/
  7. ^ a b "News Releases". ITT Educational Services, Inc. - Investor Relations. Retrieved 2016-07-07.
  8. ^ "News Releases". ITT Educational Services, Inc. - Investor Relations. Retrieved 2016-07-07.
  9. ^ Bill Alpert (14 April 2012). "Clever Is as Clever Does". barrons.com.
  10. ^ "2014/2015 Total Cost of Attendance Table" (PDF). ITT Educational Services, Inc.
  11. ^ a b c McClay, Rebecca (2015-10-31). "10 Best U.S. Two-Year Colleges That Actually Pay Off". Retrieved 2016-07-07.
  12. ^ "Transferability of Credits Disclosure" (PDF). ITT Technical Institute.
  13. ^ http://www.npr.org/sections/ed/2014/12/14/369925385/a-for-profit-college-tries-the-charter-school-market
  14. ^ http://www.in.gov/icsb/files/the-early-career-academyapp-full.pdf
  15. ^ http://www.streetinsider.com/SEC+Filings/Form+4+ITT+EDUCATIONAL+SERVICES+For%3A+Jul+18+Filed+by%3A+Zhang+Zhifeng/11848677.html
  16. ^ http://finance.yahoo.com/news/itt-educational-services-inc-reports-103000451.html
  17. ^ http://wiki.debtcollective.org/ITT_Tech
  18. ^ http://www.prnewswire.com/news-releases/itt-technical-institute-freezes-tuition-for-sixth-straight-year-300273974.html
  19. ^ a b "ITT Technical Institute". ITT Technical Institute.
  20. ^ a b c ITT Educational Services, Inc. 10-k Annual Report Year-ending December 31, 2015
  21. ^ "United States Securities and Exchange Commission Form 10-K Annual Report". Edgar Online.
  22. ^ "Under Scrutiny Itself, For-Profit Accreditor Gets Tough With ITT Tech". Inside Higher Ed. April 22, 2016.
  23. ^ https://www.insidehighered.com/quicktakes/2016/04/22/under-scrutiny-itself-profit-accreditor-gets-tough-itt-tech
  24. ^ http://www.wral.com/big-accreditor-of-for-profit-colleges-could-lose-authority/15800096/
  25. ^ http://chronicle.com/article/Federal-Panel-Votes-to-Shut/236907
  26. ^ https://www.vets.gov/gi-bill-comparison-tool/institutions/search utf8=%E2%9C%93&source=home&military_status=veteran&spouse_active_duty=no&gi_bill_chapter=33&cumulative_service=1.0&enlistment_service=3&consecutive_service=0.8&elig_for_post_gi_bill=no&number_of_dependents=0&online_classes=no&institution_search=ITT+Tech+&commit=Search+Schools
  27. ^ ITT Educational Services, Inc · 424B4 · On 1/27/99
  28. ^ Feds serve warrants at ITT Tech campuses, CNN
  29. ^ "MCPmag.com -- Microsoft Certified Professional Magazine Online". certcities.com.
  30. ^ ITT's CEO Expects Lengthy Federal Investigation, Stock Slips, Channel Web Network, Feb. 26, 2004, Mark Jewell
  31. ^ http://www.referenceforbusiness.com/history2/86/ITT-Educational-Services-Inc.html
  32. ^ "ITT, Calif. Settle False Claims Lawsuit". insidehighered.com.
  33. ^ Diamant, Aaron. "I-Team: Easy A's". WGBA-TV. Archived from the original on 2011-02-18. Retrieved 2014-11-02.
  34. ^ a b "EDGAR Pro". edgar-online.com.
  35. ^ a b "CFPB Sues For-Profit College Chain ITT For Predatory Lending". Consumer Financial Protection Bureau.
  36. ^ Mary Beth Marklein, Jodi Upton and Sandhya Kambhampati, USA TODAY (2 July 2013). "College default rates higher than grad rates". USA TODAY.{{cite web}}: CS1 maint: multiple names: authors list (link)
  37. ^ Lopez, Ricardo. "Regulator accuses ITT for-profit college chain of predatory lending". latimes.com. Retrieved 2014-02-27.
  38. ^ "State Attorneys General Open Major Investigations of Big For-Profit Colleges". The Huffington Post.
  39. ^ Stephanie Armour; Alan Zibel (13 January 2014). "CFPB, State Attorneys General Expand For-Profit College Probe - WSJ". WSJ.
  40. ^ Nick DeSantis and Goldie Blumenstyk , "U.S. Tightens Restrictions on ITT's Access to Federal Student Aid", Chronicle of Higher Education, Oct. 20, 2015 [1] Accessed 21 Oct , 2015
  41. ^ "ITT Summary: 2012 U.S. Senate Committee Finding + 2015 Update" (PDF). SquareSpace.
  42. ^ David Halperin (January 21, 2016). "Blockbuster Lawsuit Claims Abusive Practices Persist at ITT Tech". Huffington Post.
  43. ^ "California Suspends ITT Tech GI Bill Eligibility". Military.com. May 18, 2015.
  44. ^ "SEC Announces Fraud Charges Against ITT Educational Services". U.S. Securities And Exchange Commission. May 12, 2015.
  45. ^ David Halperon (April 4, 2016). "Massachusetts Sues ITT Tech for Misleading and Harassing Students". Huffington Post.
  46. ^ Bamzi Banchiri (April 5, 2016). "Massachusetts sues ITT Tech, alleging predatory practices". The Christian Science Monitor.
  47. ^ Kevin Lessmiller (April 8, 2016). "Students Say ITT Recruiters Misled Them". Courthouse News Service.
  48. ^ "Government Investigations and Lawsuits Involving For-Profit Schools (2004-May 2014)" (PDF). National Consumer Law Center.
Quelle: https://en.wikipedia.org/wiki/Special%3ADiff%2F732086671