It appears the last bell has rung for ITT. The school is in a group of for-profit colleges. They recently revealed they will no longer be enrolling new students because the federal government stopped essential funding.
Commercial real estate investors and owners who are involved with for-profit colleges should understand that these colleges generate nearly 90% of their revenue from federal student aid programs. The loss of this federal funding is shutting the book on many for-profit institutions.
ITT educational services were charged with fraud by the Securities and Exchange Commission last year. It allegedly concealed the low performance of some student loan programs. A more direct concern is the financial assessment administered by the US Department of Education. They must locate $153 million in 30 days to refund student tuition if the schools close.
It is important to understand how federal funding impacts universities and colleges. This is especially true if you are invested in these properties. Changes to federal aid impact both students and educational institutions. As an investor, it could also affect your portfolio. Keep an eye on these changes to assist you in making optimal decisions.
It appears the last bell has rung for ITT. The school is in a group of for-profit colleges. They recently revealed they will no longer be enrolling new students because the federal government stopped essential funding.
Commercial real estate investors and owners who are involved with for-profit colleges should understand that these colleges generate nearly 90% of their revenue from federal student aid programs. The loss of this federal funding is shutting the book on many for-profit institutions.
ITT educational services were charged with fraud by the Securities and Exchange Commission last year. It allegedly concealed the low performance of some student loan programs. A more direct concern is the financial assessment administered by the US Department of Education. They must locate $153 million in 30 days to refund student tuition if the schools close.
