Education Policy, Business and Technology

Obama administration turns up the heat on for-profit college chain ITT

The Washington Post: The Education Department on Monday sent ITT Educational Services a letter requesting the for-profit chain to set aside more money to cover losses in the event of its collapse, citing an increased risk to the millions of dollars in federal loans and grants funneled to students attending the schools.

Department officials say they are acting out of concern that ITT is under the threat of having its accreditation revoked, a move that could effectively shut down its technical schools. The Accrediting Council for Independent Colleges and Schools, the gatekeeper between colleges and billions of dollars in federal financial aid, has asked the company to show why it is worthy of accreditation as it faces state and federal investigations, lawsuits and regulatory actions.

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