California Abandons Unlawful Attempt To Suspend ITT Technical Institute

Aug 25, 2015, 07:00 ET from ITT Educational Services, Inc.

CARMEL, Ind., Aug. 25, 2015 /PRNewswire/ -- ITT Technical Institute has prevailed in its efforts to overturn the unlawful suspension imposed by the California State Approving Agency for Veterans Education ("CSAAVE").

During the morning of Friday, August 21, 2015, State Court Judge William D. Claster issued a tentative final ruling in ITT Tech's favor that the suspension was unlawful, observing that "[t]he problem with [CSAAVE's] decision is that there does not appear to be any statutory or regulatory authority allowing this [suspension]." Hours later, CSAAVE abandoned its unlawful attempt to suspend ITT Tech and told Judge Claster that "the suspension is off the table" and "there is no pending suspension against ITT [Tech]."

In May, CSAAVE had unlawfully suspended its approval of ITT Tech for enrollment by veteran students and threatened to permanently withdraw its approval in 60 days. Without any evidence and without giving ITT Tech any opportunity to respond, CSAAVE improperly claimed that ITT Tech was not in compliance with the accreditation standards of the Accrediting Council for Independent Colleges and Schools ("ACICS"), a nationally-recognized accrediting agency, even though ACICS assured CSAAVE that ITT Tech was in compliance. ITT Tech challenged CSAAVE's actions in court, and in June, Judge Claster stayed the suspension after issuing a preliminary ruling in ITT Tech's favor.

"We've always believed that, if we were given the opportunity to present the facts to an impartial body, ITT Tech's position would be vindicated. We're extremely pleased to continue serving the educational needs of veterans without unlawful interruption," said Nicole Elam, vice president of government relations and external affairs. "We took the necessary legal steps to ensure our current and future veteran students may use the educational benefits they earned through their service at the school of their choosing—ITT Tech. The agency had no lawful basis for suspending its approval of our programs and we are glad that justice has prevailed."

About ITT Educational Services, Inc.
ITT Educational Services, Inc. (NYSE: ESI) provides technology-oriented undergraduate and graduate degree programs through its accredited postsecondary institutions, 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 130 ITT Technical Institutes and Daniel Webster College. ITT/ESI serves approximately 47,000 students at its campuses in 39 states and online. Through the Center for Professional Development @ ITT Technical Institute, ITT/ESI provides short-term information technology and business learning solutions for career advancers and other professionals. Headquartered in Carmel, Ind., 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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