05.20.15

Durbin Calls on Illinois Board of Higher Education to Take Action Against ITT Tech to Protect Students from Any Wrongdoing

ITT Tech currently operates at least four campuses in Illinois – Arlington Heights, Orland Park, Oak Brook and Springfield

[WASHINGTON, D.C.] – Following the Securities and Exchange Commission’s (SEC) lawsuit against ITT Tech and two of its executives for fraud, U.S. Senator Dick Durbin (D-IL) today called on the Illinois Board of Higher Education to take appropriate action against ITT Tech to protect current students and ensure that additional students are not harmed.  ITT Tech - under investigation by at least 18 state Attorneys General – currently operates at least four campuses in Illinois including Arlington Heights, Orland Park, Oak Brook, and Springfield. 

“Over the past several years and especially in recent days, ITT Tech has faced increasing scrutiny from state and federal regulators over well-documented wrongdoing,” wrote Durbin.  “Based on the troubling findings of other states and federal agencies, such as the CFPB and SEC, I ask that the Illinois Board of Higher Education take appropriate action against ITT to protect current students and ensure that additional students are not harmed.  I also ask that you work with the Illinois Department of Veterans Affairs to protect Illinois’ veterans from any wrongdoing by this company.”

Text of today’s letter is below.

 

 

 

May 20, 2015

 

 

Dr. James L. Applegate

Executive Director

Illinois Board of Higher Education

1 North Old State Capitol Plaza

Suite 333

Springfield, IL 62701

 

Dear Dr. Applegate:

 

I write today about mounting evidence of wrongdoing by ITT Tech and ask that the Illinois Board of Higher Education take appropriate action to protect Illinois students.

 

I am aware that ITT Tech currently operates at least four campuses in Illinois including Arlington Heights, Orland Park, Oak Brook, and Springfield.  Over the past several years and especially in recent days, ITT Tech has faced increasing scrutiny from state and federal regulators over well-documented wrongdoing.

 

ITT Tech is under investigation by at least 18 state Attorneys General related to marketing and recruiting, job placement rates, and other matters.  In addition, the New Mexico Attorney General is suing ITT Tech for making misrepresentations to students about their accreditation status and unfair, deceptive and unconscionable practices.  The suit alleges that ITT Tech falsely told students its nursing program held programmatic accreditation, which was required for students’ ITT Tech credits to count toward an advanced nursing program in New Mexico and for students ultimately to get a job in nursing.  The Attorney General also found that ITT Tech placed students into loans without their knowledge, falsely stated the number of credits a student had to take in order to push them into taking on more debt, failed to issue refunds of tuition and fees in compliance with federal law, and engaged in a variety of other despicable practices. 

 

Further, the Consumer Financial Protection Bureau (CFPB) filed suit against ITT Tech for predatory lending.  According to CFPB, ITT Tech coerced students into high-cost private loans, with interest rates as high as 16.25%, that they knew were likely to end in default.  The CFPB’s complaint states that it believes ITT Tech misrepresented future job prospects to lead students to believe they would be able to repay the loans.   

 

Just last week, the Securities and Exchange Commission charged ITT Tech, CEO Kevin Modany, and CFO Daniel Fitzpatrick with fraud for concealing the poor performance and looming financial impact of its institutional loan programs from investors. 

 

On Friday, the California State Approval Agency for Veteran Education suspended GI Bill approval for ITT Tech in that state.  The notice of suspension prohibits ITT from future enrollment or reenrollment of veterans using GI Bill benefits provided by the U.S. Department of Veterans Affairs. 

 

Based on the troubling findings of other states and federal agencies, such as the CFPB and SEC, I ask that the Illinois Board of Higher Education take appropriate action against ITT to protect current students and ensure that additional students are not harmed.  I also ask that you work with the Illinois Department of Veterans Affairs to protect Illinois’ veterans from any wrongdoing by this company.

 

Thank you for your work on behalf of Illinois students and for your consideration of my requests.

 

                                                            Sincerely,

 

 

 

                                                            Richard J. Durbin

                                                            United States Senator

 

 

 

cc: Lindsay K. H. Anderson, Chair, Illinois Board of Higher Education

     Erica Jeffries, Director, Illinois Department of Veterans Affairs