CARMEL, Ind. (AP) — Indiana-based education company ITT Educational Services Inc. is facing multiple challenges, including a federal lawsuit over its alleged predatory lending and a big drop in its stock price.
The Carmel-based national chain says it has taken steps to meet the demands of federal regulators and maintains a stable cash flow.
But education experts and stock analysts tell The Indianapolis Star ITT is struggling to ward off the same kind of regulatory crackdown that recently forced the collapse of another for-profit college in California.
ITT’s problems come as the Obama administration is working to enact new regulations to protect students enrolled at for-profit colleges from incurring large amounts of loan debt.
At stake is the company’s large workforce and degree programs that have an enrollment of about 57,000 students nationally.