Shares of ITT Educational Services Inc., a for-profit college that focuses on technology, fell the most in seven weeks Monday after the company disclosed that U.S. regulators subpoenaed documents related to private loan programs for its students.
The Securities and Exchange Commission demanded documents relating to “actions and accounting” for the programs, which helped students pay for education costs that weren’t covered by state, federal and other funding sources, Carmel, Indiana-based ITT said Friday in a filing.
ITT shares fell 17 percent to $15.53 at the close in New York. The stock has slumped 79 percent in the past year.
Congress, along with state and federal investigators, has been probing for-profit colleges’ recruitment practices and students’ debt loads after leaving school. The SEC’s subpoena asked for documents related to agreements ITT made with outside entities to loan funds to students, according to the filing.
ITT Educational said in the filing that it’s cooperating with the SEC. Lauren Littlefield, a spokeswoman, didn’t immediately return a call seeking comment.
© Copyright 2024 Bloomberg News. All rights reserved.