Department of Ed Issues 'Caution Lights'Posted: Updated:
Six colleges in Indiana have been placed under increased federal scrutiny. In a blog post, U.S. Department of Education Under Secretary Ted Mitchell says a school can be placed on the list for "a number of financial or federal compliance issues." He says not all issues are serious and some may be "less troublesome."
All colleges on the list from Indiana are either private or for-profit institutions.
The Indiana colleges on the March 31 list are:
-ITT Technical Institute in Indianapolis, Saint Mary of the Woods College, Holy Cross College in Notre Dame, Medtech College in Indianapolis, Lincoln College of Technology in Indianapolis and Masters Cosmetology College in Fort Wayne.
Mitchell says the classification is "not necessarily a red flag," but it can serve as a "caution light" to students and taxpayers.
Source: The U.S. Department of Education
March 31, 2015
Statement Issued by ITT Educational Services Inc.
"The ITT Technical Institutes was placed on the heightened cash monitoring 1 list solely because we were late filing our financial statements with the Department last year.
As previously disclosed, the reason for our delay was due to an extended review of a complex accounting issue which included guidance we requested from the SEC's Office of the Chief Accountant. This is a standard penalty for late filings.
While other schools may be on the list for concerns about financial responsibility or the operation of the institution - that is not the case for ITT Tech."
Source: ITT Educational Services Inc.