ITT Educational Services Rejects the CFPB’s Claims

CARMEL, Ind., Mar. 4, 2014 /PRNewswire/ — ITT Educational Services, Inc.
believes that the Consumer Financial Protection Bureau’s complaint should never
have been filed. The complaint overwhelmingly focuses on issues that are
unrelated to consumer finance, and attempts to cast a negative light on aspects
of ITT Tech’s activities that are extensively regulated by other government
agencies. The core claims concern a mere six months of loans, but the Bureau
knows that independent third parties provided those loans, and the loan programs
ended years ago. Significantly, ITT Tech did not make any money, in interest or
fees, from those third-party programs, which were designed to help students
during the recent economic downturn. We are disappointed that the Bureau chose
to sue rather than work with ITT Tech to address any legitimate concerns about
efforts to help students pay for their education.

ITT Tech has been educating students since 1969 – more than a million students
to date – and approximately 57,000 students are currently enrolled. Many of ITT
Tech’s students are veterans, single parents, and others underserved by
traditional educational opportunities, which do not fit their life situations.
ITT Tech’s graduates are employed by many of America’s leading companies, and we
take pride in our relationships with the wide array of employers that hire our
graduates. In fact, more than 14,000 different employers hired an ITT Tech
graduate in the last two years.

Contrary to the Bureau’s allegations, ITT Tech did not “coerce” its students
into unfair loans, or “rush” them through the financial aid process. Much of the
complaint relies on “mystery shoppers” – a program that ITT Tech itself
voluntarily uses to make sure its policies are being followed by its employees,
and to help ensure that errors in implementation are caught and corrected. The
“mystery shopper” program gives ITT Tech the information to retrain or even
terminate employees as appropriate. The complaint presents excerpts from the
“mystery shopper” program without any context, giving isolated anecdotes that
are examples of the conduct the program is designed to root out and eliminate.

The complaint is an aggressive attempt by the Bureau, recently created by the
Dodd-Frank Act, to extend its jurisdiction into matters well beyond consumer
finance. It is unjustified as a matter of law and mistaken as a matter of fact.
ITT Tech believes the complaint is without merit and we intend to vigorously
contest the Bureau’s theories in court.

While we will dedicate the necessary resources to defend ourselves against these
meritless claims, the ongoing focus of our more than 10,000 employees across the
Nation remains on assisting our students’ efforts to complete their programs of
study successfully and obtain employment in their chosen fields. We are
extremely proud of our work over the last 45 years and we intend to continue our
mission of helping people improve their lives through the pursuit of
high-quality, career-based education.

About ITT Educational Services, Inc.
ITT Educational Services, Inc. (NYSE: ESI) provides accredited,
technology-oriented undergraduate and graduate degree programs through its ITT
Technical Institutes and Daniel Webster College to help students develop skills
and knowledge that they can use to pursue career opportunities in a variety of
fields. It owns and operates more than 135 ITT Technical Institutes and Daniel
Webster College. ITT/ESI serves more than 55,000 students at its campuses in 39
states and online. Through the Center for Professional Development at ITT
Technical Institute, ITT/ESI provides short-term information technology and
business learning solutions for career advancers and other professionals.
Headquartered in Carmel, IN, ITT/ESI has been actively involved in the higher
education community since 1969 and can be found online at www.ittesi.com.

SOURCE ITT Educational Services, Inc.

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