ITT Technical Institute ( ITT Tech ) was a private for-profit technical institute with its headquarters in Carmel, Indiana and many campuses throughout the United States. Founded in 1969 and growing to 130 campuses in 38 states of the United States, ITT Tech was one of the largest for-profit educators in the US before it closed in 2016.
115-520: The institute was owned and operated by ITT Educational Services, Inc., a publicly traded company headquartered in Carmel. The company also owned and operated the Breckinridge School of Nursing and Health Sciences schools. In 1999, two former ITT employees brought forth a law suit alleging the school used illegal recruitment practices, saying the school was "abusing that system for years and ripping off
230-661: A for-profit institution. In 2013, ESI began operating public charter schools in three cities: Indianapolis , Tempe , and Troy, Michigan . In charter documents, the company referred to potential students as "educational have-nots." ITT Technical Institute charged among the highest tuition fees in the industry - between $ 45,000 to $ 85,000 in 2014 - and had the industry's highest rate of loans that went into default within two years of attendance. In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3,000,000 shares of ITT Educational Services stock. In July 2016, ESI reported that enrollment
345-787: A December 2010 Bloomberg article, former UoPX senior vice president Robert W. Tucker noted that "at critical junctures, [co-founder] John [Sperling] chose growth over academic integrity, which ultimately diminished a powerful educational model". At its peak, UoPX operated more than 500 campuses and learning sites. The university began to focus on opening new resource centers for online students to provide spaces for alumni to network and current students to seek assistance from professors and peers. In August 2011, Apollo Group announced it would buy 100% of Carnegie Learning to accelerate its efforts to incorporate adaptive learning into its academic platform. Controversies concerned its marketing and recruitment practices, instructional hours, its status as one of
460-597: A bachelor's degree shortly before his 33rd birthday (he began college in 2002 at the University of Pittsburgh ) and was a spokesman for UoPX. Several American policymakers have been affiliated with University of Phoenix and Apollo Education. Former secretary of the Department of Education , Margaret Spellings , is a member of the Apollo Group Board of Directors. Jane Oates, a former staffer for Senator Ted Kennedy and
575-668: A class-action lawsuit against the corporation, arguing that it withheld information leading to large losses in stock prices. Several of the allegations related to UoPX's recruiting of military personnel and veterans. In February 2016, Apollo Group announced its sale to a private investment group comprising Apollo Global Management , the Vistria Group, and the Najafi Companies , for $ 1 billion. Former U.S. Department of Education deputy secretary Anthony W. Miller , partner and chief operating officer of Vistria, became chairman. The sale
690-503: A former counsel for Edward Kennedy, also resigned. In October 2005, ITT agreed to pay $ 730,000 to settle a lawsuit with California. The involved employees alleged that it inflated students' grade point averages to qualify them for more financial aid from the State of California. A February 2011 investigative report by WTMJ-TV in Milwaukee found evidence of widespread grade inflation at
805-401: A former counsel for Edward Kennedy, also resigned. In October 2005, ITT agreed to pay $ 730,000 to settle a lawsuit with California. The involved employees alleged that it inflated students' grade point averages to qualify them for more financial aid from the State of California. A February 2011 investigative report by WTMJ-TV in Milwaukee found evidence of widespread grade inflation at
920-497: A learner-centered environment of mutual respect." ITT Tech offered associate, bachelor's , and master's (business-only, online) degrees. The commonwealth of Pennsylvania was the only state which forbade ITT Tech to offer master's degrees. As of December 31, 2015 , the ITT Technical Institutes were offering 49 education programs in various fields of study. At the vast majority of campuses, ITT Tech organized
1035-427: A learner-centered environment of mutual respect." ITT Tech offered associate, bachelor's , and master's (business-only, online) degrees. The commonwealth of Pennsylvania was the only state which forbade ITT Tech to offer master's degrees. As of December 31, 2015, the ITT Technical Institutes were offering 49 education programs in various fields of study. At the vast majority of campuses, ITT Tech organized
1150-602: A list of "10 Best U.S. Two-Year Colleges That Actually Pay Off." According to TheStreet.com, ITT's Seattle campus ranked fourth in terms of alumni reporting rewarding careers, only after its sister ITT Technical Institute schools in San Antonio , West Houston, and San Diego . In September 1998, ITT Tech agreed to settle eight legal proceedings involving 40 former students arising out of their recruitment and education practices at ITT Tech campuses. The settlements cost $ 12.9 million, which included legal fees. In Daniel Graves filed
1265-546: A list of "10 Best U.S. Two-Year Colleges That Actually Pay Off." According to TheStreet.com, ITT's Seattle campus ranked fourth in terms of alumni reporting rewarding careers, only after its sister ITT Technical Institute schools in San Antonio , West Houston, and San Diego . In September 1998, ITT Tech agreed to settle eight legal proceedings involving 40 former students arising out of their recruitment and education practices at ITT Tech campuses. The settlements cost $ 12.9 million, which included legal fees. In Daniel Graves filed
SECTION 10
#17328685744941380-530: A majority of ITT Technical Institute students worked at least part-time during their programs. A significant portion of classes involved practical study in a lab environment. ITT Tech was nationally accredited by the Accrediting Council for Independent Colleges and Schools (ACICS). According to ITT Educational Services' annual report for the fiscal year 2015, 31 campuses and more than 400 programs were not meeting ACICS standards for student retention. Per
1495-467: A majority of ITT Technical Institute students worked at least part-time during their programs. A significant portion of classes involved practical study in a lab environment. ITT Tech was nationally accredited by the Accrediting Council for Independent Colleges and Schools (ACICS). According to ITT Educational Services' annual report for the fiscal year 2015, 31 campuses and more than 400 programs were not meeting ACICS standards for student retention. Per
1610-620: A nonprofit college in Manchester, New Hampshire , hired most of the college's faculty and staff. This arrangement allowed the 2016–17 academic year to proceed as usual. DWC's aviation and engineering programs were effectively transferred into SNHU, which had offered to buy the Nashua campus. However, its bid got rejected, and SNHU instead opted to build a new on-campus science and engineering building. In 2014, Time magazine ranked ITT Technical Institute No. 2 on its list of "The 5 Colleges That Leave
1725-515: A nonprofit college in Manchester, New Hampshire , hired most of the college's faculty and staff. This arrangement allowed the 2016–17 academic year to proceed as usual. DWC's aviation and engineering programs were effectively transferred into SNHU, which had offered to buy the Nashua campus. However, its bid got rejected, and SNHU instead opted to build a new on-campus science and engineering building. In 2014, Time magazine ranked ITT Technical Institute No. 2 on its list of "The 5 Colleges That Leave
1840-575: A partner of U.S. Army University and has had a presence at a few military bases. The institution depends almost entirely on contingent faculty : about 97 percent of Phoenix instructors teach part-time, compared to 47 percent nationwide. This reliance on part-time faculty has been criticized by regulators and academic critics. Most of the classes are centrally crafted and standardized to ensure consistency and to maximize profits. No faculty members get tenure . Adjuncts earn approximately $ 1000–$ 2000 per course. Approximately 21 cents of every tuition dollar
1955-483: A peak enrollment of more than 470,000 students with a revenue of $ 4.95 billion. A 2010 report found that its online graduation rate at the time was only five percent. Later in the year, the university paid $ 154.5 million for 20-year naming rights for advertising purposes of the University of Phoenix Stadium in Glendale, Arizona . The company terminated the naming rights deal on April 11, 2017, and on September 4, 2018,
2070-716: A private lender for ITT Tech, settled with the Consumer Financial Protection Bureau and 44 states and the District of Columbia. The settlement called for CUSO to forgive a reported $ 168 million in private student loans. CUSO agreed to stop collecting on, and discharge, all of the loans. The school characterized ITT Tech students as "older and balancing family obligations with underemployment." The company's web site stated: "The programs employ traditional, applied and adult-learning pedagogies and are delivered through traditional, accelerated and distance methodologies in
2185-585: A private lender for ITT Tech, settled with the Consumer Financial Protection Bureau and 44 states and the District of Columbia. The settlement called for CUSO to forgive a reported $ 168 million in private student loans. CUSO agreed to stop collecting on, and discharge, all of the loans. The school characterized ITT Tech students as "older and balancing family obligations with underemployment." The company's web site stated: "The programs employ traditional, applied and adult-learning pedagogies and are delivered through traditional, accelerated and distance methodologies in
2300-600: A professional training portfolio, the latter of which is a collection of documents such as transcripts from other schools, certificates, licenses, workshops or seminars. UoPX has been regionally accredited since 1978 by the HLC. In May 2013, the university's accreditation status was placed on "notice" for a period of two years (with allowed retention of their regional accreditation) by the HLC, due to "insufficient autonomy relative to its parent corporation". The HLC Institutional Actions Council First Committee (IACFC) concerns centered on
2415-541: A resolution urging the Idaho State Board of Education to overturn its May 2023 vote endorsing the acquisition. Later in the month, Idaho's Senate State Affairs Committee brought SB 1450 to the floor, which intended to restructure Four Three Education into an independent body corporate politic rather than a not-for-profit, but the Idaho Senate narrowly voted the bill down, with 14 yes votes to 19 no votes. After passing
SECTION 20
#17328685744942530-457: A settlement of $ 191 million related to charges that it recruited students using misleading advertisements . NPR reported the amount included $ 50 million in cash (which was later distributed as checks to more than 100,000 former students), as well as a $ 141 million cancellation in student debt , though the cancellations "won't affect student borrowers' obligations for federal or private loans". The institution admitted no wrongdoing as part of
2645-486: A similar complaint and the cases were consolidated. The Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund were the lead plaintiffs. Students continue to allege that private loans with JP Morgan Chase and other banks are predatory loans . In 2013 USA Today listed more than 50 ITT campuses as "red flag" schools because their student loan default rates were higher than their graduation rates. On February 26, 2014,
2760-483: A similar complaint and the cases were consolidated. The Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund were the lead plaintiffs. Students continue to allege that private loans with JP Morgan Chase and other banks are predatory loans . In 2013 USA Today listed more than 50 ITT campuses as "red flag" schools because their student loan default rates were higher than their graduation rates. On February 26, 2014,
2875-611: A substantive change” for the University of Idaho. Idaho Attorney General Raúl Labrador sued the University of Idaho, alleging that the acquisition was being pursued in violation of Idaho's Open Meetings Law. The case was brought to trial and dismissed in January 2024. Labrador appealed the decision, taking the case to the Idaho Supreme Court . In March 2024, the Idaho legislature passed
2990-565: A whistleblower lawsuit against ITT Tech after a short stint working for the company, alleging compensation for some ITT staff violated the Higher Education Act of 1965 by incentivizing recruiters based on the number of students they enrolled with the school. The case alleged a culture of corruption at ITT, and was litigated for about 17 years until ITT prevailed when the US Supreme Court refused to hear an appeal of earlier rulings that
3105-443: A whistleblower lawsuit against ITT Tech after a short stint working for the company, alleging compensation for some ITT staff violated the Higher Education Act of 1965 by incentivizing recruiters based on the number of students they enrolled with the school. The case alleged a culture of corruption at ITT, and was litigated for about 17 years until ITT prevailed when the US Supreme Court refused to hear an appeal of earlier rulings that
3220-693: Is John Woods. Lynne previously worked at Arthur Andersen , Education Management Corporation , Northcentral University , and HotChalk . Woods has a PhD in higher education administration from Bowling Green State University. According to the College Scorecard , the University of Phoenix student body's ethnic composition is 39 percent unknown, 26 percent white, 20 percent black, 11 percent Hispanic, 2 percent multiracial, with 1 percent each for Asian, American Indian/Alaska Native and Native Hawaiian/Pacific Islander as of July 2022 . The 2020 Academic Annual Report for UoPX indicated women make up two-thirds of
3335-524: Is institutionally accredited by the Higher Learning Commission and has an open enrollment admissions policy for many undergraduate programs. The school is owned by Apollo Global Management and Vistria Group. University of Phoenix was founded in 1976 by John Sperling and John D. Murphy. In 1980, it expanded to San Jose, California , and launched its online program in 1989. Much of UoPX's revenue came from employers who were subsidizing
3450-680: Is spent on instruction. According to the Integrated Postsecondary Education Data System , the student to faculty ratio is 110 to 1 in the Arizona segment. The university reported 76 full-time and 3,143 part-time faculty in its Arizona segment; full-time faculty make up 2 percent of the total faculty. In 2016, a Brookings Institution study estimated University of Phoenix's five-year student loan default rate at 47 percent. The College Navigator lists University of Phoenix's overall graduation rate at 15 percent. According to
3565-502: Is when they started going to Wall Street ." The sentiment was echoed by Murphy in his book Mission Forsaken: The University of Phoenix Affair with Wall Street . In 2004, Murphy thought that "the University of Phoenix abandoned its founding mission of solely serving working adult learners to admit virtually anyone with a high school diploma or GED." In terms of revenue, UoPX began to rely less on corporate assistance and more on government funding. In 2007, The New York Times reported that
ITT Technical Institute - Misplaced Pages Continue
3680-705: The Academic Competitiveness Grant , Federal Pell Grant , National Science & Mathematics Access to Retain Talent Grant (National SMART Grant) , Federal Direct Student Loan Program , Federal Supplemental Educational Opportunity Grant , Federal Direct PLUS Loans , Federal Perkins Loan , and the Wounded Warrior Project . In the 2017–18 award year, 51,990 UoPX received the Federal Pell Grant. Besides postsecondary degree-level programs,
3795-462: The Consumer Financial Protection Bureau (CFPB) sued ITT. The CFPB alleged ITT used high-pressure tactics to coerce students into obtaining high-interest private loans that were likely to end in default. ESI is also being investigated by at least a dozen state attorneys general for allegations of fraud and deceptive marketing. According to a July 2014 Senate Health, Education, Labor, and Pensions (HELP) committee report, 57% of ITT programs would fail
3910-457: The Consumer Financial Protection Bureau (CFPB) sued ITT. The CFPB alleged ITT used high-pressure tactics to coerce students into obtaining high-interest private loans that were likely to end in default. ESI is also being investigated by at least a dozen state attorneys general for allegations of fraud and deceptive marketing. According to a July 2014 Senate Health, Education, Labor, and Pensions (HELP) committee report, 57% of ITT programs would fail
4025-457: The Council for Higher Education Accreditation . UoPX was ranked 386th out of 391 schools in the 2021 Washington Monthly list of national universities. The university is ranked #331-440 in the 2022 edition of the U.S. News & World Report National Universities. UoPX is a subsidiary of Apollo Global Management and Vistria Group. The president is Chris Lynne and the chief academic officer
4140-531: The Department of Defense suspended the school's ability to recruit on U.S. military bases and receive federal funding for educating members of the U.S. military. After protest from senators John McCain , Jeff Flake , and Lamar Alexander , the suspension was lifted in January 2016. The Federal Trade Commission (FTC) began investigating the university in 2015 in regard to an advertising campaign it ran from 2012 to 2014. On December 10, 2019, UoPX agreed to pay
4255-471: The surety funds that ITT Tech was required to have, and to produce those funds within 30 days. ITT stock soon dropped by 35% which triggered a halt in trading and raised concerns about whether ITT Educational would be able to survive this latest decision. On September 6, 2016, ITT Tech ceased operations and closed all of its locations, issuing a statement that attributed the closing to the Department of Education's actions. In 2022, ITT Technical Institute
4370-469: The surety funds that ITT Tech was required to have, and to produce those funds within 30 days. ITT stock soon dropped by 35% which triggered a halt in trading and raised concerns about whether ITT Educational would be able to survive this latest decision. On September 6, 2016, ITT Tech ceased operations and closed all of its locations, issuing a statement that attributed the closing to the Department of Education's actions. In 2022, ITT Technical Institute
4485-618: The "ITT" name under license. In the mid-2000s, CEO Rene Champagne cashed out more than $ 50 million in stock, before stepping down from the position in 2007. Kevin Modany was appointed as CEO, while maintaining all of the positions (president, COO, and director) he had held from early June 2002. It acquired the financially struggling Daniel Webster College (DWC) in Nashua, New Hampshire in June 2009 for $ 29.3 million. The nonprofit college converted into
4600-531: The 2016–17 school year. During this time, the university continued to spend tens of millions of dollars on marketing and advertising, including $ 27 million on internet paid search advertising. The Brookings Institution reported that UoPX spent $ 76 million on advertising in 2017. From 2009 to 2015, University of Phoenix received an estimated $ 1.2 billion of federal money issued through the G.I. Bill. The university enrolled almost 50,000 such students in 2014, twice as many as any other institution. In October 2015,
4715-510: The 2019 academic report, degreed enrollment was 87,400. In March 2020, the U.S. Department of Veterans Affairs (VA) announced that they had suspended certification for G.I. Bill funds for new students at UoPX, citing a history of deceptive recruiting practices. The VA withdrew its threat of sanctions in July 2020. The same year, UoPX received $ 6.5 million in CARES Act funding and $ 7.4 million in
ITT Technical Institute - Misplaced Pages Continue
4830-487: The College Scorecard, of student debtors two years into repayment, 32 percent were in forbearance, 28 percent were not making progress, 13 percent were in deferment, 11 percent defaulted, 7 percent were making progress, 5 percent were delinquent, 2 percent were paid in full, and 1 percent were discharged. Phoenix alumni in the government sector include Howard Schmidt , Mary Peters (1994), and Brad Dee (1991). In
4945-478: The Department of Education's proposed Gainful Employment rule. On October 19, 2015, the US Department of Education announced that because of the company's failure "to meet its fiduciary obligations" it was placed under additional scrutiny. In a 2015 federal whistleblower lawsuit, former ITT employee Rodney Lipscomb alleged the company used coercive tactics to enroll students who were unlikely to pass classes at
5060-420: The Department of Education's proposed Gainful Employment rule. On October 19, 2015, the US Department of Education announced that because of the company's failure "to meet its fiduciary obligations" it was placed under additional scrutiny. In a 2015 federal whistleblower lawsuit, former ITT employee Rodney Lipscomb alleged the company used coercive tactics to enroll students who were unlikely to pass classes at
5175-789: The Department of Labor, became the Apollo Group's vice president for external relations in 2013. Nancy Pelosi 's close friendship with Sperling has been documented by Suzanne Mettler in Degrees of Inequality. University of Phoenix has community partnerships with Boys and Girls Clubs of America , the American Red Cross, and the Junior League. In 2016, University of Phoenix partnered with the ASIS Foundation to provide scholarships for students studying for security-related degrees. In March 2016,
5290-578: The ITT Tech web site, "it is unlikely that any credits earned at an ITT Technical Institute will be transferable to or accepted by any institution other than an ITT Technical Institute." In April 2016, ACICS issued the company a "show cause" order to request information establishing why the accreditor should continue to accredit the institution. This order was in response to its programs being non-compliant with specific standards. In 2015, financial news site TheStreet.com ranked ITT Technical Institute-Seattle on
5405-525: The ITT Tech web site, "it is unlikely that any credits earned at an ITT Technical Institute will be transferable to or accepted by any institution other than an ITT Technical Institute." In April 2016, ACICS issued the company a "show cause" order to request information establishing why the accreditor should continue to accredit the institution. This order was in response to its programs being non-compliant with specific standards. In 2015, financial news site TheStreet.com ranked ITT Technical Institute-Seattle on
5520-551: The May 31st deadline of the original purchase agreement, both sides agreed to an extension, creating a new end date of June 10, 2025. In the agreement, Phoenix will reimburse the U of I $ 5 million, covering some of the legal fees related to due diligence of the purchase agreement. A non-exclusivity structure was also agreed upon, where Phoenix would be allowed to either seek a new buyer or undergo an initial public offering during negotiations. If Phoenix does not come to an agreement with U of I by
5635-527: The Most Students Crippled By Debt". Among ITT Tech graduates with loans due in 2011, 22% had defaulted by 2014. This statistic compares with a default rate of about 13.7% for student loans generally. According to the Time magazine report, ITT Tech's default rate ranked second. The for-profit University of Phoenix had a lower default rate by percentage (19% at Phoenix versus ITT Tech's 22%). However,
5750-407: The Most Students Crippled By Debt". Among ITT Tech graduates with loans due in 2011, 22% had defaulted by 2014. This statistic compares with a default rate of about 13.7% for student loans generally. According to the Time magazine report, ITT Tech's default rate ranked second. The for-profit University of Phoenix had a lower default rate by percentage (19% at Phoenix versus ITT Tech's 22%). However,
5865-592: The Office of the Attorney General for the State of California (CAG) investigated ITT Technical Institutes in California. The CAG's investigation was in response to qui tam actions filed against the company under either state, federal, or both False Claims Acts. ( Qui tam actions are writs through which private individuals who assist a prosecution can receive part or all of the damages or financial penalties recovered by
SECTION 50
#17328685744945980-431: The Office of the Attorney General for the State of California (CAG) investigated ITT Technical Institutes in California. The CAG's investigation was in response to qui tam actions filed against the company under either state, federal, or both False Claims Acts. ( Qui tam actions are writs through which private individuals who assist a prosecution can receive part or all of the damages or financial penalties recovered by
6095-587: The Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud. Breckinridge School of Nursing and Health Sciences ITT Technical Institute ( ITT Tech ) was a private for-profit technical institute with its headquarters in Carmel, Indiana and many campuses throughout the United States. Founded in 1969 and growing to 130 campuses in 38 states of
6210-479: The Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud. University of Phoenix University of Phoenix ( UoPX ) is a private for-profit university headquartered in Phoenix, Arizona . Founded in 1976, the university confers certificates and degrees at the certificate , associate , bachelor's , master's , and doctoral degree levels. It
6325-507: The United States Department of Education and lenders to repay $ 1.5 billion in claims against ITT alleging that regulators took advantage of low-income students and neglected their oversight duties. Three years later, the US Department of Education allocated $ 1.1 billion in relief to an additional 115,000 former ITT Tech students. In 1946, ITT Tech was established as Educational Services, Inc. From 1965 until its IPO in 1994, ITT Tech
6440-454: The United States, ITT Tech was one of the largest for-profit educators in the US before it closed in 2016. The institute was owned and operated by ITT Educational Services, Inc., a publicly traded company headquartered in Carmel. The company also owned and operated the Breckinridge School of Nursing and Health Sciences schools. In 1999, two former ITT employees brought forth a law suit alleging
6555-422: The University of Phoenix between September 21, 2012, and December 31, 2014. In April 2024, the University of Phoenix and California Attorney General Rob Bonta resolved an investigation into UoPX's use of military student recruitment tactics from 2012 through 2015 via settlement, where the university agreed to pay out $ 4.5 million in penalties and other fees. Apollo Global Management has been attempting to sell
6670-473: The University of Phoenix since 2021. A number of schools and systems were approached, including Tuskegee University , UMass Global , the University of Arkansas System , and the University of Idaho (U of I). In April 2023, the University of Arkansas System Board voted against the proposed sale. In May 2023, the University of Idaho announced a deal to acquire the University of Phoenix. The total cost would be $ 685 million raised through bonds. A new entity
6785-661: The abbreviated courses and the use of learning teams result in an inferior education. UoPX has been criticized for lack of academic rigor; Henry M. Levin, a professor of higher education at Teachers College at Columbia University , called its business degree an "MBA Lite", saying "I've looked at [its] course materials. It's a very low level of instruction." The university's "corporate articulation agreements" provide an alternative assessment program for people working at other companies to earn college credit for training they have completed at their jobs. To qualify for college credit, students either write an "experiential essay" or create
6900-521: The academic schedules based on four 12-week academic quarters in a calendar year, with new students beginning at the start of each academic quarter. Using that calendar, students taking a full course load could complete associate degree programs in seven or eight academic quarters, bachelor's degree programs in 14 or 15 academic quarters, or a master's degree program in seventeen academic quarters. Depending on student enrollment, class sessions at ITT Technical Institute campuses were generally available during
7015-520: The academic schedules based on four 12-week academic quarters in a calendar year, with new students beginning at the start of each academic quarter. Using that calendar, students taking a full course load could complete associate degree programs in seven or eight academic quarters, bachelor's degree programs in 14 or 15 academic quarters, or a master's degree program in seventeen academic quarters. Depending on student enrollment, class sessions at ITT Technical Institute campuses were generally available during
SECTION 60
#17328685744947130-419: The authority of their consumer protection statutes: Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Tennessee and Washington. On August 25, 2016, the U.S. Department of Education banned ITT Tech from enrolling students who receive federal aid. The department also doubled
7245-418: The authority of their consumer protection statutes: Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Tennessee and Washington. On August 25, 2016, the U.S. Department of Education banned ITT Tech from enrolling students who receive federal aid. The department also doubled
7360-463: The borrower defense rule would be rewritten and replaced with a stricter repayment policy starting July 1, 2019. On December 13, 2018, a US federal court ruled that the department's decision to do this was "arbitrary and capricious." The court sided with plaintiffs in invalidating the stay put in place by the Department of Education. There will be an additional hearing on December 14, 2018, to "address remedies." In June 2019, Student CU Connect CUSO,
7475-458: The borrower defense rule would be rewritten and replaced with a stricter repayment policy starting July 1, 2019. On December 13, 2018, a US federal court ruled that the department's decision to do this was "arbitrary and capricious." The court sided with plaintiffs in invalidating the stay put in place by the Department of Education. There will be an additional hearing on December 14, 2018, to "address remedies." In June 2019, Student CU Connect CUSO,
7590-510: The case was dismissed for failure to state a claim . In 2004, federal agents served search warrants at the company's headquarters and ten of its campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California, and Oregon, seeking various student records. No civil or criminal charges were made at this time. The investigation negatively affected the company's stock and triggered several class-action lawsuits by investors. The same year,
7705-457: The case was dismissed for failure to state a claim . In 2004, federal agents served search warrants at the company's headquarters and ten of its campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California, and Oregon, seeking various student records. No civil or criminal charges were made at this time. The investigation negatively affected the company's stock and triggered several class-action lawsuits by investors. The same year,
7820-487: The company referred to potential students as "educational have-nots." ITT Technical Institute charged among the highest tuition fees in the industry - between $ 45,000 to $ 85,000 in 2014 - and had the industry's highest rate of loans that went into default within two years of attendance. In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3,000,000 shares of ITT Educational Services stock. In July 2016, ESI reported that enrollment
7935-500: The day and evening. The courses for education programs taught online were delivered through an asynchronous learning network and had a prescribed schedule for completion of the coursework. At the vast majority of ITT Technical Institute campuses, the class schedule for education program residence courses and the coursework completion schedule for online courses generally provided students with the flexibility to maintain employment concurrently with their studies. Student surveys indicated that
8050-500: The day and evening. The courses for education programs taught online were delivered through an asynchronous learning network and had a prescribed schedule for completion of the coursework. At the vast majority of ITT Technical Institute campuses, the class schedule for education program residence courses and the coursework completion schedule for online courses generally provided students with the flexibility to maintain employment concurrently with their studies. Student surveys indicated that
8165-664: The deadline, the university owes the U of I another $ 5 million. If Phoenix is bought by another school or seeks an IPO, it agreed to pay the U of I $ 15 million as a "break-up fee". UoPX has an open admissions policy by which most of its undergraduate programs are accessible to anyone with a high school diploma, GED, or their equivalent. Prior to 2010, the university recruited students using high-pressure sales tactics, including assertions that classes were filling fast, by admissions counselors who are paid, in part, based on their success in recruiting students. The university recruits students and obtains financial aid on their behalf, such as
8280-448: The findings but paid a $ 9.8 million fine as part of a settlement where it admitted no wrongdoing and was not required to return any financial aid funds. The university also paid $ 3.5 million to the Department of Labor to settle a violation of overtime compensation regarding hours worked by UoPX's recruiters. UoPX settled a false claims suit for $ 78.5 million in 2009 over its recruiter-pay practices. In 2008, Pereira O'Dell became
8395-640: The first ten scholarship recipients were announced. In 2017, the Vistria Group was part of the deal with Apollo Global Management to take over the schools. Vistria included two friends of Barack Obama : Miller and Martin Nesbitt . In 2019, the Apollo Education Group was the third largest higher education lobby, and has 18 lobbyists at the federal level. In 2021, UoPX demanded that the Republican Attorneys General Association refund
8510-472: The following month and ITT Tech filed for bankruptcy. In 2018, ITT Tech's court-appointed bankruptcy trustee sued the United States Department of Education and lenders to repay $ 1.5 billion in claims against ITT alleging that regulators took advantage of low-income students and neglected their oversight duties. Three years later, the US Department of Education allocated $ 1.1 billion in relief to an additional 115,000 former ITT Tech students. In 1946, ITT Tech
8625-430: The government as a result of the prosecution). The probe alleged that ITT Tech falsified records relating to student attendance, grades, and academic progress. It also said that ITT Tech falsified student grade point average calculations used to qualify students for financial aid under the State's Cal Grant Program and retaliated against employees who may have complained about those alleged acts. Omer Waddles, ESI's CEO, and
8740-429: The government as a result of the prosecution). The probe alleged that ITT Tech falsified records relating to student attendance, grades, and academic progress. It also said that ITT Tech falsified student grade point average calculations used to qualify students for financial aid under the State's Cal Grant Program and retaliated against employees who may have complained about those alleged acts. Omer Waddles, ESI's CEO, and
8855-662: The government for billions of dollars." In 2004, the Justice Department initiated a criminal investigation into ITT colleges in eight states. Following state and federal investigations, the United States Department of Education prevented students from using federally guaranteed student loans at ITT Tech locations in August 2016. All ITT Tech campuses were closed the following month and ITT Tech filed for bankruptcy. In 2018, ITT Tech's court-appointed bankruptcy trustee sued
8970-514: The higher education of their managers. Academic labor underwent a process of unbundling , in which "various components of the traditional faculty role (e.g., curriculum design) are divided among different entities, while others (e.g., research) are eliminated altogether". In 1994, UoPX leaders made the parent company, Apollo Group , public. Its enrollment exceeded 100,000 students by 1999. Senator Tom Harkin , who chaired hearings on for-profit colleges, said, "I think what really turned this company
9085-447: The implications of enrollment, including their eligibility for student financial aid. In January 2010, the parent company Apollo Group was required to post a letter of credit for $ 125 million by January 30 of the same year. In 2010, UoPX came under government scrutiny after its Phoenix and Philadelphia campuses were found to have engaged in deceptive enrollment practices and fraudulent solicitation of FAFSA funds. In 2010, UoPX claimed
9200-556: The last of its enrolled students either graduate or drop out. However, on September 6, 2016, ITT Technical Institute announced that it was shutting down all of its campuses, effective immediately. At the time of its system-wide closure on September 6, 2016, the school had more than 130 ITT Technical Institute campuses across the United States, with more than 40,000 students and 8,000 employees. ITT Educational Services filed for Chapter 7 bankruptcy liquidation on September 16, 2016. As for DWC, Southern New Hampshire University (SNHU),
9315-551: The last of its enrolled students either graduate or drop out. However, on September 6, 2016, ITT Technical Institute announced that it was shutting down all of its campuses, effective immediately. At the time of its system-wide closure on September 6, 2016, the school had more than 130 ITT Technical Institute campuses across the United States, with more than 40,000 students and 8,000 employees. ITT Educational Services filed for Chapter 7 bankruptcy liquidation on September 16, 2016. As for DWC, Southern New Hampshire University (SNHU),
9430-510: The lead ad agency for UoPX for a reported $ 220 million. During the 2008–2009 fiscal year, the UoPX student body received more Pell Grant money ($ 656.9 million) than any other university and was the top recipient of student financial aid funds, receiving almost $ 2.48 billion. The university's graduation rate was 17 percent, according to federal data that measures first-time, full-time (FTFT) undergraduate students who complete their programs at 150% of
9545-464: The normal time. University of Phoenix has been the largest recipient of federal G.I. Bill tuition benefits and the largest for-profit recipient by Pell Grant assistance funding. In 2009, the Department of Education produced a report claiming the untimely return of unearned Title IV funds for more than 10 percent of sampled students. The report also expressed concern that some students register and begin attending classes before completely understanding
9660-458: The number of students they enrolled, a violation of the Higher Education Act . The university's parent company settled by paying the government $ 67.5 million, plus $ 11 million in legal fees, without admitting any wrongdoing. In 2004, the Department of Education alleged that UoPX violated Higher Education Act provisions that prohibit financial incentives to admission representatives, and pressured its recruiters to enroll students. UoPX disputed
9775-496: The position in 2007. Kevin Modany was appointed as CEO, while maintaining all of the positions (president, COO, and director) he had held from early June 2002. It acquired the financially struggling Daniel Webster College (DWC) in Nashua, New Hampshire in June 2009 for $ 29.3 million. The nonprofit college converted into a for-profit institution. In 2013, ESI began operating public charter schools in three cities: Indianapolis , Tempe , and Troy, Michigan . In charter documents,
9890-592: The private sector, alumni include former MBA Chair at the Forbes School of Business & Technology and radio host Diane Hamilton. In military and law enforcement, alumni include Kirkland H. Donald and Harold Hurtt (1991). Former MSNBC anchor and a host of NBC's Early Today Christina Brown is also an alumna of the university. Athletes who have earned degrees from the university include Shaquille O'Neal (2005), Lisa Leslie , Michael Russell (2012), and Larry Fitzgerald (2016). Fitzgerald graduated with
10005-651: The same year, Arthur Green, a former UoPX enrollment advisor, sued the school and claimed that it had violated the US False Claims Act . According to Green, he was fired for uncovering billions of dollars in fraud. Five years later, the case was dismissed in 2019 after the US Department of Justice under William Barr decided not to take the case and the records were sealed. In 2014, UoPX partnered with 47 historically black colleges and universities to offer UoPX classes that transfer to these institutions. 142,500 students enrolled on August 31, 2016, and 119,938 during
10120-494: The school offers continuing education courses for teachers and practitioners, professional development courses for companies, and specialized courses of study for military personnel. Students spend 20 to 24 hours with an instructor during each course, and are required to collaborate on learning team projects. Students have access to class-specific online resources, which include an electronic library of textbooks and other course materials. Some academics and former students argue
10235-486: The school used illegal recruitment practices, saying the school was "abusing that system for years and ripping off the government for billions of dollars." In 2004, the Justice Department initiated a criminal investigation into ITT colleges in eight states. Following state and federal investigations, the United States Department of Education prevented students from using federally guaranteed student loans at ITT Tech locations in August 2016. All ITT Tech campuses were closed
10350-597: The school's Milwaukee area location in Greenfield . In one instance a student received a score of 100% on a computer forensics assignment by emailing the professor a noodle recipe. The station's reporters believed tactics such as these increased federal student aid funding. In 2013, a complaint was filed against ESI and two ESI executive officers in U.S. District Court for the Southern District of New York regarding securities. The Massachusetts Laborers' Annuity Fund filed
10465-484: The school's Milwaukee area location in Greenfield . In one instance a student received a score of 100% on a computer forensics assignment by emailing the professor a noodle recipe. The station's reporters believed tactics such as these increased federal student aid funding. In 2013, a complaint was filed against ESI and two ESI executive officers in U.S. District Court for the Southern District of New York regarding securities. The Massachusetts Laborers' Annuity Fund filed
10580-517: The school's degeneration from a provider of working adult continuing education programs to a money making machine whose sole criterion for admission was eligibility for federally funded student loans. In 2014 the Department of Education's Office of the Inspector General demanded records from the school and Apollo Group going back to 2007 "related to marketing, recruitment, enrollment, financial aid, fraud prevention, [and] student retention". In
10695-491: The school's graduation rate had plummeted and that educational quality had eroded. In 2000, the federal government fined the university $ 6 million for including study-group meetings as instructional hours. In 2002, the Department of Education relaxed requirements on instructional hours. A 2003 lawsuit filed by two former university recruiters alleged that the school improperly obtained hundreds of millions of dollars in financial aid by paying its admission counselors based on
10810-955: The school; unlawfully paid sales commissions to recruiters; and lied to students about their financial obligations and transferability of ITT credits to other schools and career prospects. The same year, The California Department of Veterans Affairs (CalVet) temporarily ordered ITT Tech to stop enrolling new or returning students who fund their educations with GI Bill benefits. In 2015, the Securities and Exchange Commission also announced fraud charges against ITT Educational Services Inc., its chief executive officer Kevin Modany, and its chief financial officer Daniel Fitzpatrick. In 2016, Massachusetts Attorney General Maura Healey sued ITT Educational Services for allegedly "misleading and harassing students." Breckinridge nurses also sued ITT Education for fraud. Between 2004 and 2014, several states issued subpoenas or Civil Investigative Demands against ITT Tech under
10925-897: The school; unlawfully paid sales commissions to recruiters; and lied to students about their financial obligations and transferability of ITT credits to other schools and career prospects. The same year, The California Department of Veterans Affairs (CalVet) temporarily ordered ITT Tech to stop enrolling new or returning students who fund their educations with GI Bill benefits. In 2015, the Securities and Exchange Commission also announced fraud charges against ITT Educational Services Inc., its chief executive officer Kevin Modany, and its chief financial officer Daniel Fitzpatrick. In 2016, Massachusetts Attorney General Maura Healey sued ITT Educational Services for allegedly "misleading and harassing students." Breckinridge nurses also sued ITT Education for fraud. Between 2004 and 2014, several states issued subpoenas or Civil Investigative Demands against ITT Tech under
11040-556: The second round of COVID-19 relief funds. In 2020, UoPX began experimenting with micro-campuses, giving the centers a " WeWork vibe". In 2021, Bloomberg reported that Apollo's higher education investment had gained about 50 percent in value: from its $ 634 million initial investment to $ 956 million. UoPX also received $ 3.4 million in aid through the American Rescue Plan . In 2021, UoPX continued to close campuses, including Atlanta and Salt Lake City. The Phoenix, Arizona campus
11155-424: The settlement, which was at the time the largest FTC settlement against a for-profit school. In 2015, MarketWatch reported that UoPX students owed more than $ 35 billion in student loan debt , the most of any US college at the time. Between 2010 and 2016, enrollment declined by more than 70 percent amid multiple investigations, lawsuits, and controversies. In 2016, Apollo Education Group shareholders filed
11270-572: The stadium's naming rights were acquired by State Farm . In August 2010, an ABC News investigation identified a UoPX recruiter who sought new students from Y-Haven, a homeless shelter in Cleveland , Ohio . Another University of Phoenix recruiter falsely claimed that the university's Bachelor of Science in Education degree would be sufficient to qualify the producer to teach in Texas or New York . In
11385-443: The student body, the average student age is 37, and more than 83 percent of its students are employed while in school. The 2020 report also noted that 21% of the student body were affiliated with the military, of which 41% are women. 26% of 2020 graduates were military-affiliated graduates. In 2020–21, 1,316 students used Department of Defense Tuition Assistance and 7,380 students used G.I. Bill funds. University of Phoenix has been
11500-419: The three years after their graduation. In 2018, a settlement to a class-action lawsuit was tentatively reached to wipe out student loans for attendees from 2006 to 2016. Students who attended ITT Tech may be able to have their debt forgiven by applying to the United States Department of Education for borrower defense to repayment. However, Secretary of Education Betsy DeVos announced on July 25, 2018, that
11615-416: The three years after their graduation. In 2018, a settlement to a class-action lawsuit was tentatively reached to wipe out student loans for attendees from 2006 to 2016. Students who attended ITT Tech may be able to have their debt forgiven by applying to the United States Department of Education for borrower defense to repayment. However, Secretary of Education Betsy DeVos announced on July 25, 2018, that
11730-569: The top recipients of student aid, and a student body carrying the most student debt of any college. In 2013, the Department of Defense ended its contract with University of Phoenix for military bases in Europe. U.S. military commanders at Fort Campbell , Kentucky, allowed UoPX representatives to advertise and place promotional materials in high-traffic areas. Access was provided in exchange for cash. Murphy wrote in Mission Forsaken (2013) about
11845-412: The total number of students in default from Phoenix was much higher (45,123 Phoenix students versus 11,260 ITT Tech students). According to the College Scorecard, as of March 2016 , 39% of ITT Tech graduates were paying off their debt, compared to the national average of 66% among all U.S. schools. This percentage represented the number of graduates able to repay at least $ 1 in student loan debt in
11960-409: The total number of students in default from Phoenix was much higher (45,123 Phoenix students versus 11,260 ITT Tech students). According to the College Scorecard, as of March 2016, 39% of ITT Tech graduates were paying off their debt, compared to the national average of 66% among all U.S. schools. This percentage represented the number of graduates able to repay at least $ 1 in student loan debt in
12075-504: The university's governance, student assessment, and faculty scholarship in relation to Ph.D. programs. In June 2015, the HLC determined that the University of Phoenix had resolved those concerns. University of Phoenix has 18 programs with business, healthcare, nursing, counseling and education having programmatic or specialized accreditation. Some individual colleges within University of Phoenix hold specialty accreditation or are pre-accredited by accrediting agencies that are recognized by
12190-547: Was a wholly owned subsidiary of the ITT Corporation (as "ITT/ESI"). During its years in operation, it was based in Carmel, Indiana . By 1986, all its institutions had become known by the common name "ITT Technical Institute." By 1999, ITT Corporation had divested itself completely of ITT Tech's shares. The schools were allowed to continue using the "ITT" name under license. In the mid-2000s, CEO Rene Champagne cashed out more than $ 50 million in stock, before stepping down from
12305-414: Was approved by both the Department of Education and the Higher Learning Commission (HLC). In December 2016, the U.S. Department of Education approved of the sale of Apollo Education Group to Apollo Global Management. The company provided a letter of credit for up to $ 385 million. In February 2017, after the takeover by Apollo Global Management, UoPX laid off 170 full-time faculty members. According to
12420-530: Was approved in August 2022, stating that the schools on the list were included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven." In April 2023, the Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud. On September 20, 2023, the Biden administration canceled nearly $ 37 million of federal student loan debt for more than 1,200 borrowers who were enrolled at
12535-399: Was created for the purchase by U of I ultimately named Four Three Education. The Higher Learning Commission approved a "continuation of accreditation" for the school under Four Three Education. The Northwest Commission on Colleges and Universities (U of I's accreditors) completed a review of the potential acquisition and continued accreditation, determining that the deal “does not constitute
12650-444: Was established as Educational Services, Inc. From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of the ITT Corporation (as "ITT/ESI"). During its years in operation, it was based in Carmel, Indiana . By 1986, all its institutions had become known by the common name "ITT Technical Institute." By 1999, ITT Corporation had divested itself completely of ITT Tech's shares. The schools were allowed to continue using
12765-604: Was one of 153 institutions included in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement was approved in August 2022, stating that the schools on the list were included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven." In April 2023,
12880-488: Was one of 153 institutions included in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement was approved in August 2022, stating that the schools on the list were included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven." In April 2023,
12995-431: Was projected to drop by 30% to 40% from 2015 to 2016. In August 2016, the U.S. Department of Education barred the company from enrolling new students who use government loans. On the 30th of the same month, ITT Technical Institute stopped accepting applications for new enrollment. At that time, ITT Tech said that existing students could still finish their studies. ITT Tech also said that they would continue to operate until
13110-428: Was projected to drop by 30% to 40% from 2015 to 2016. In August 2016, the U.S. Department of Education barred the company from enrolling new students who use government loans. On the 30th of the same month, ITT Technical Institute stopped accepting applications for new enrollment. At that time, ITT Tech said that existing students could still finish their studies. ITT Tech also said that they would continue to operate until
13225-460: Was the only location accepting new in-person students. UoPX would later announce that only one campus would remain open in 2025. The University of Phoenix was one of 153 institutions included in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers in 2019, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement
#493506