The following article written by Ian McGugan , investment editor of The Globe, states that ESI, the parent company of ITT Tech(ITT Educational Services), ranks number 8 in the entire United States with respect to its cash position. In fact, Mr McGugan writes that ITT Technical Institute is actually gushing cash. ESI stock has a market capitalization of more than half a billion US Dollars. What does this mean? Investors worldwide have bought that many shares worth of stock in ITT Tech. The article that you see below was written by an investment specialist NOT an educator.
What is the secret to ITT Tech’s success? Their high-powered national TV and Radio advertising campaign lures in hundreds of new students or victims daily. They are much like Jack in the Box hamburgers….a substandard product with an enormous advertising budget. The students are actually customers that ITT Tech is trying to retain. Most ITT Tech students end up owing the school/business over $20,000 even if they do not graduate. A relatively small percentage of the ITT Tech graduates get jobs like the ones portrayed in the well-known ITT Tech commercials you see on television.
ITT Tech spends more money on their advertisements and commercials than they do on faculty salary and curriculum development. ITT Tech recruiters only care about getting you to sign on the dotted line. We know a guy that worked at ITT Tech in Dallas Texas. He said they go through instructors like paperboys. One or two instructors were quitting or getting fired every month. Does this sound like a place where you want to spend your hard earned money or accrue mountains of debt?
Chris Kirkham of the Huffington Post wrote an excellent piece detailing how for profit schools charge exorbitant tuition for an inferior education/vocational training. In closing, the cash that ITT Tech Gushes is for its shareholder NOT its students. Much of the money that you are paying in tuition drives up the price of the ESI stock and allows holders of the stock to retire earlier while you are paying back a student loan and still working the same low-paying job you had before your ill-fated decision to enroll at ITT Tech.