HUFFINGTON POST: Fresh Out Of Government, Student Loan Warrior Issues Warnings About Major For-Profit College Chain
Career College Central Summary:
The revolving door between federal financial regulators and the industries they oversee doesn't usually spin in the direction of aiding low-income college students trying to learn a trade. But that's exactly what happened on Wednesday when Rohit Chopra, until recently of the Consumer Financial Protection Bureau, sent a scorching letter to Wall Street warning money managers about their investment in a troubled for-profit college chain.
ITT Educational Services Inc. is an Indiana-based for-profit college operator that ranks among the nation's largest, enrolling some 51,000 students at Daniel Webster College and ITT Technical Institutes across 143 campuses in 39 states, as of March 31. The company faces pending lawsuits from Chopra's former employer for allegedly swindling students on their student loans and deceiving them about their future job prospects, and from the Securities and Exchange Commission for allegedly misleading investors. ITT also faces pending lawsuits or investigations from attorneys general in 19 states and the District of Columbia.
Until Monday, Chopra oversaw student loans and campus financial products for the CFPB. On Wednesday, he joined the Center for American Progress, a Washington-based policy organization with close ties to the Obama administration and Hillary Clinton's presidential campaign. And in his letter to some of ITT's biggest investors, Chopra could barely contain his contempt for the company.
"I have serious concerns that ITT is not properly managed," Chopra wrote. "Unless investors provide more vigorous oversight over management and the board, ITT will continue to harm both its students and its shareholders."
"As it stands now, the company is not well situated for survival," he added.
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