ITT Educational Scrutiny Spreads to College’s Lenders
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For-profit college ITT Educational Services Inc., already under pressure from the U.S. Education Department, is facing stricter terms from lenders that could put its operations at risk.
Last week, ITT Educational disclosed an agreement with creditors that would push its loans into default should the government delay access to student-aid funds, the lifeblood of for-profit colleges, by more than five days. On Aug. 4, the company’s market value shrank by almost half and ITT said Chief Executive Officer Kevin Modany will step down in February.