The Clinton For-Profit College Standard ITT’s biggest mistake was not putting Bill Clinton on the payroll.
http://www.wsj.com/articles/the-clinton-for-profit-college-standard-1473204250
ITT Technical Institute folded on cue Tuesday after the Obama Administration issued a regulatory death warrant last month. ITT investors must be wishing they had ponied up for political protection like Laureate International Universities, the for-profit college that paid Bill Clinton $17.6 million to serve as its “honorary chancellor.”
ITT’s decision to close all of its 130 some campuses—stranding 40,000 students and 8,000 employees—comes after the Education Department barred new enrollees from tapping federal aid, delayed loan reimbursements and raised its collateral by $153 million. ITT had a mere $78 million on hand at the end of June and no way of meeting the Administration’s cash demand.
ITT’s execution follows the usual pattern: A pack of regulators attack from all angles—i.e., the Accrediting Council for Independent Colleges and Schools, Securities and Exchange Commission, Consumer Financial Protection Bureau and state Attorneys General—and try to run their target out of business before it can raise a legal defense. None of their charges have been proven in court.
Department officials claim they are merely trying to protect students and taxpayers even though the SEC and CFPB allegations involve ITT’s private loan program. Many ITT students won’t be able to transfer to other schools, and the college’s closure means that nearly $500 million in student debt could be wiped out. ITT has put up only $90 million in collateral to cover discharged loans. Taxpayers would be on the hook for the rest.
Although Education Secretary John King claimed that ITT could have stayed in business by taking “corrective action,” liberals appear to have plotted the company’s assassination long ago. Rohit Chopra worked at the CFPB and the Center for American Progress before signing on as a special adviser to Mr. King in January. In June 2015 Mr. Chopra warned ITT shareholders that the department “can revoke eligibility for federal student aid with minimal notice” and that “ITT may be forced to post even more collateral to maintain eligibility. . . . Unless ITT makes improvements to management culture, the board of directors, and executive compensation, it may be unable to survive over the long term.”
Immediately after the department imposed its lethal sanctions on ITT, Mr. Chopra departed for the Hillary Clinton campaign. Maybe he’ll be tasked to answer questions about the Clintons’ lucrative ties to Laureate.
According to the results of a public records request by Judicial Watch, Bill Clinton was paid $17.6 million to serve as Laureate’s “honorary chancellor” between 2010 and 2015. Laureate has also donated between $1 million and $5 million to the Clinton Foundation. The company’s founder Doug Becker contributed $2,700 to Mrs. Clinton’s current presidential campaign. CONTINUE AT SITE
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