CAPPS - Avocacy and Communication Professional Development

California Association of Private Postsecondary Schools

For-Profit Giant ITT Says It May Face Financial Restrictions

07/02/2014

ITT Educational Services Inc. said in a corporate filing on Wednesday that it may face financial restrictions over its failure to file a set of documents with the U.S. Department of Education. A set of financial statements was due to the department by June 30 but was not sent, according to the filing.

The company, a major player in for-profit higher education, said it was in “ongoing communication” with the department, The Wall Street Journal reports.

The Chronicle of Higher Education ~ July 2, 2014. The news comes as another big component of the sector, Corinthian Colleges Inc., and the Education Department failed to meet a Tuesday deadline to agree on the specifics of a plan to close the company’s campuses. Corinthian had been late in some of its filings to the department, which prompted the government to impose financial restrictions. That put Corinthian’s ability to stay open in doubt.

Corinthian and the department expect to release the terms of their agreement within the next few days.