Do not be mislead by ITT Educational Services (ESI-$93.00) impressive balance sheet or 27 percent gains in new student enrollments for the third quarter, as the trail of money starts and ends back at ITT itself. Federal loan programs are falling short, so the for-profit educator is dipping into its own coffers to help students cover this widening tuition gap. Up to 65 percent of its students need private lending, and analysts estimate that $100 million to $120 million in loans and scholarship assistance will need to come from ITT’s internal lending program.
With a likely deliquency rate of 40 – 50 percent from internally generated loans, how much bad debt expense will likely fall to ITT’s bottom line? Read more at BNET Technology….
With a likely deliquency rate of 40 – 50 percent from internally generated loans, how much bad debt expense will likely fall to ITT’s bottom line? Read more at BNET Technology….
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
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