The U.S. Department of Education on Monday notified ITT Educational Services Inc. that it was placing the giant for-profit educator under tighter restrictions for access to federal student-aid money, saying the company had failed "to meet its fiduciary obligations."
The department outlined its move in a letter to ITT’s chief executive, Kevin M. Modany, who in May was one of two top company officials whom the U.S. Securities and Exchange Commission accused of fraud, along with the company itself, for allegedly lying to investors about the financial standing of student-loan programs that ITT had guaranteed. The company is one of several large operators of for-profit colleges that are known to be on fragile financial footing.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/US-Tightens-Restrictions-on/233830