Aug
21
“ITT’s two-year associate degrees can cost as much as $47,000, estimates Kelly Flynn of Credit Suisse. Yet the average starting salary for employed graduates—73% of 2009’s class found jobs by April—is only “slightly north” of $30,000, says the company. So default rates are high: 24% so far for loans extended in 2007. On some loans ITT extends itself, the company may assume close to a 45% loss rate up front, Ms. Flynn estimates. But losses on loans matter little for the companies. Since 85% of ITT’s 2009 revenue came from government funds, taxpayers will suffer the deepest financial wounds. Government revenue for Apollo and Career Education in 2009 was 86% and 80%, respectively.”
HEARD ON THE STREET: For-Profit Schools Face Detention Not Expulsion - WSJ.com
