Implications of the For-Profit Failures


Education Dive has linked to an article in the New York Times on the chronology of the collapse of ITT Tech and has provided the following “Brief” of the article’s findings:

The New York Times examines the chronology of ITT Technical Institute’s historic collapse, which began in 1999, when a former employee sued the school for paying incentives for predatory recruiting practices.

“Dan Graves helped the federal government to uncover a business plan which had yielded more than $12 billion in revenue between 2000 and 2016, with 70% of its revenue coming from federal student aid amounting to more than $400 million in defaulted student loans.

“The prevalence of the abuse was allowed to go on, thanks in large part to the lobbying power of the for-profit sector. According to the Times, lobbyists hired by ITT received almost $1 million in payment for federal engagement since 1998.”

Certainly, the details…

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