Tag Archives: ITT Educational Services

Unofficial FY07 3-Year Cohort Default Rates Come In-line With Expectations, Now Comes the Hard Part for COCO and WPO

December 14, 2009 – 6:51 pm

The Department of Education released unofficial 3-year cohort default rate data this morning.  You can find the DOE’s press release here, which also contains a link to an excel file with school by school 3-year cohort default rate data.  Overall, the data was more or less inline with our expectations.  The addition of an extra [...]

By PAA Research | Posted in For-profit Education | Also tagged , , , , , , | Comments (1)

Details of Department of Education Negotiated Rulemaking Proposals Leak Out – Incentive Comp and Program Affordability Changes Would Have Large Implications

December 1, 2009 – 12:37 pm

The U.S. Department of Education (DOE) distributed its first round of proposals to the negotiated rulemaking panel on Monday on Program Integrity Issues in the higher education space.  The initial hearings for this year’s negotiated rulemaking sessions were held from November 2-6.  You can find more details on the initial hearings and the schedule for subsequent [...]

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COCO’s Bad-Debt Expense Slight of Hand, 25%+ Cohort Default Rates Are Coming, It Appears Regulatory Headwinds Could be Mounting

August 27, 2009 – 9:02 am

We have written extensively about our concerns about the for-profit postsecondary education space and ITT Educational Services, Inc. in particular.  Our primary thesis is that overly aggressive tuition policies have significantly reduced the return on educational investment to the point where for some programs it is outright negative.  This is a SECULAR issue, which will be [...]

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Can the Income Based Repayment Plan Save ESI from A Tidal Wave of Student Loan Defaults?

July 5, 2009 – 1:30 pm

In our original post on ITT Educational Services, Inc., we argued that the company’s business model was structurally broken because it was no longer clear that students earned a positive return on their educational investment. After more than a decade of increasing tuition at an annual rate twice that of inflation, the affordability equation for [...]

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Survey Shows the Elasticity of Demand Is Starting to Creep Into the Higher Education Sector – The Acceptance Rates at Some SUNY Schools Are Lower than Some in the Ivy League

June 11, 2009 – 4:51 pm

One of the more remarkable aspects of the U.S. higher education system over the past two decades has been the relative inelasticity of demand in response to constantly rising tuition. Tuition at both public and private schools has more than doubled in the past 15-years, far outpacing the overall rate of inflation, yet [...]

By PAA Research | Posted in For-profit Education, Short Ideas | Also tagged , , , | Comments (1)

Some Quick Thoughts on the Credit Suisse For-profit Education Sector Downgrade and ESI’s Upcoming Earnings Release

April 21, 2009 – 6:49 pm

The leading for-profit postsecondary education providers (APOL, CECO, COCO, DV, ESI, STRA) all sold off in excess of 5% today following a series of downgrades from Credit Suisse. It appears Credit Suisse is increasingly concerned that the appointment of Bob Shireman as deputy undersecretary of Education will represent a new age of regulatory [...]

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