Carmel-based ITT Educational Services Inc. (NYSE: ESI) is no longer enrolling any students. Last week, ITT was banned by the U.S. Department of Education from enrolling students using federal financial aid after failing to meet accreditation standards.
The Accrediting Council for Independent Colleges and Schools announced that ITT was not in compliance, and was unlikely to become in compliance, with its accreditation criteria. The department also prohibited ITT from awarded raises, paying bonuses or making severance payments to executives without approval.
ITT has released a statement Friday, saying "The company is evaluating these additional sanctions and requirements, as well as all options available to it." ITT’s stock dropped from more than $2 per share on Thursday to $0.44 at market close Monday.
The department added ITT must inform current students of its status with ACICS. Current students will still be eligible to apply for federal financial aid.