News
DeVos Proposes to Curtail Debt Relief for Defrauded Students | New York Times
Education Secretary Betsy DeVos proposed on Wednesday to curtail Obama administration loan forgiveness rules for students defrauded by for-profit colleges, requiring that student borrowers show they have fallen into hopeless financial straits or prove that their colleges knowingly deceived them.
Students Left Dangling as Art Institute of Charleston Shuts Down | The Post and Courier
The rise and fall of the Art Institute of Charleston took just 11 years, carrying with it the aspirations of hundreds of young artists — and leaving some of them struggling beneath a mountain of debt.
His two year degree cost him $90,000. Now he’s in a battle with the Education Department | CNBC
Shaun Joyce used to sit at his desk at The Art Institute of Charlotte in North Carolina, on edge. That's because a staff member could burst into his classroom at any moment and lead him on the "walk of death." That was when students would be summoned to the for-profit school's financial aid office and told they'd "run out" of loans, Joyce said. Then the student would be informed that he or she needed to borrow more money immediately, or else leave the school.
Art Institute of Philadelphia Students, Facing the School's Closure, Weigh Offers from Harcum College and Others | The Inquirer
Yo, all you beleaguered Art Institute students. Harcum College, an associate’s-degree-granting college in Bryn Mawr, has a deal for you: $5,000 in tuition assistance for any student affected by the institute’s closure in Philadelphia and at other campuses.
SEC’s $300,000 ITT Settlement Leaves Trail of Questions | Indianapolis Business Journal
The Securities and Exchange Commission came at ITT Educational Services Inc.’s two top executives with guns blazing three years ago, declaring that CEO Kevin Modany and Chief Financial Officer Daniel Fitzpatrick “engineered a campaign of deception and half-truths.”
Students Cry for Debt Relief After For-Profit College Collapse, While Executives Admit No Wrongdoing | Market Watch
As a young high school graduate, Joseph Schettler had dreams of working for the FBI or becoming a forensic psychologist. He took steps to make those dreams a reality. Schettler became the first person in his family to go to college, enrolling in the criminal justice program at ITT Tech in 2006 with assurances from the school that he would surely get a job in his field.
ITT Execs Offered 'Sweetheart Deal' | Politico
That’s how lawyers representing defrauded ITT students are describing the settlement reached late last week between the Securities Exchange Commission and two former senior executives of ITT Educational Services Inc., the company behind a troubled for-profit college that shuttered in 2016.
DOJ Must Give Harvard FOIA Docs On For-Profit College | Law360
A Pennsylvania federal judge ruled Monday that the U.S. Department of Justice must turn over some of the documents a Harvard Law School legal clinic had sought from a whistleblower lawsuit over a struggling Pittsburgh-based for-profit college provider’s student recruitment and loan policies.
Top ITT Executives Agree to Fines, Ban From Top Corporate Jobs in SEC Settlement | Indy Star
The top executives of the defunct Carmel company that operated ITT Technical Institute have settled fraud charges with the Securities and Exchange Commission. Former CEO Kevin Modany will pay $200,000 and former Chief Financial Officer Daniel Fitzpatrick will pay $100,000 to resolve allegations that they concealed ITT Educational Services' worsening financial condition from investors in the years leading up to the company's collapse.
Former executives of defunct for-profit college firm ITT settle fraud charges with SEC | Washington Post
Former top executives at ITT Educational Services, the parent company of defunct ITT Technical Institute, have settled fraud cases with the Securities and Exchange Commission, avoiding a trial slated to begin Monday. A judgment order entered Friday puts to rest civil fraud charges filed in 2015 against former ITT chief executive Kevin Modany and former chief financial officer Daniel Fitzpatrick for allegedly deceiving investors about high rates of late payments and defaults on student loans backed by the company.