Dive Brief:
- ITT Educational Services, already subject to heightened cash monitoring by the U.S. Department of Education, will face yet another level of scrutiny in its business operations.
- Inside Higher Ed reports that the for-profit education group will have to send the department cash flow projections every two weeks, as well as information about major financial transactions and its plans for school closures and new programs.
- ITT will also have to make monthly reports with contact information for all of its individual students, their projected graduation dates, and their enrollment statuses, according to the article.
Dive Insight:
The new level of scrutiny by the Education Department follows the Securities and Exchange Commission’s announcement of fraud charges against ITT, its CEO, and its CFO. Those charges allege the company and its leaders misled investors about the major financial consequences of guaranteeing two student loan programs. ITT is also under investigation by the Consumer Financial Protection Bureau for predatory lending practices, and Inside Higher Ed reports that New York and California regulators have prohibited the company from enrolling veterans paying for school with GI Bill benefits.
