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.
As Feds Pull Back, States Step in to Regulate For-Profit Colleges and Universities | Hechinger Report
Signs of trouble at the Charlotte School of Law percolated for years. In exchange for the median $161,910 graduates had borrowed to pay tuition, fees and other costs, according to the American Bar Association, only 45 percent were passing the bar exam. That was far below the state average. Only about one in five of 2016 graduates got full-time jobs in legal offices, the advocacy organization Law School Transparency reported.
As the Trump Administration Pulls Back, States Step in to Regulate Questionable Colleges | NBC News
Signs of trouble at the Charlotte School of Law percolated for years. Fewer than half of its graduates passed the bar exam. Only one in five got full-time legal jobs. And the U.S. Department of Education found the school misrepresented its credentials and their odds of success.
Court Tells Department of Ed to Stop Debt Collections for Defrauded Borrowers | Inside Higher Ed
A federal district court this week ordered the Trump administration to halt collections on loans held by former Corinthian Colleges students while it sorts out the legality of a system to provide partial debt relief to borrowers who were defrauded or misled by their institution.
Judge Expands Order Blocking DeVos Partial Loan Forgiveness Policy | Politico
A federal judge in California is expanding the number of former Corinthian Colleges students who will receive a temporary reprieve on their federal student loans amid an ongoing legal challenge to the Trump administration’s loan discharge policies.
Judge Rejects DeVos’s Interpretation of Order to Halt Partial Student Debt Relief Plan | The Washington Post
Tens of thousands of former Corinthian Colleges students can breathe a sigh of relief after a federal judge said late Tuesday that the U.S. Department of Education must stop all attempts to collect on their federal student loans. The decision clarifies the scope of the judge’s ruling in May banning the Education Department from using earnings data to grant partial student loan forgiveness to Corinthian students and halting collection on their federal debts.