Dive Brief:
- ITT Technical Institute will reduce its spending in marketing and recruitment, which is likely to drop enrollment by more than half this fall.
- Plummeting stock and anti-predatory enrollment policies from the U.S. Department of Education have dropped enrollment by nearly 50% over the last six years.
- The department has demanded ITT show a $120 million letter of credit to verify its ability to pay outstanding debt if the institution were to close.
Dive Insight:
The potential collapse of ITT from new federal regulations could signal the collapse of the entire for-profit industry, given the school's dominance in the higher ed marketplace. In tandem with the collapse of Corinthian Colleges, the closure of other institutions, and mounting pressure against its accreditor, the for-profit industry at large is facing a very real threat of dismantling.
Other colleges and universities should closely monitor department policies that may demand similar financial or public disclosure actions, which could create similar issues with marketability and recruitment.
