ITT Technical Institutes Reports an Increase in the Affordability of Its Degree Programs
Leading provider of technology-oriented degree programs cites cost reduction and the award of over $170 million in scholarships to students in 2013.
Carmel, Ind. (May 13, 2014) — ITT Educational Services, Inc. (NYSE: ESI) today reported results of its dedication to make its accredited, technology-oriented degree programs more affordable for students.
"As part of our commitment to affordability, the ITT Technical Institutes awarded in excess of $170 million in scholarships in 2013," said Chairman and CEO Kevin M. Modany. "The scholarships, combined with a reduction in the cost of the majority of our programs in recent years, have improved the affordability of degree programs at the ITT Technical Institutes," he said. As a result, our students' use of private loans to help finance their education is almost nonexistent.
"At a time when we're having a public debate about the cost of education, it's important to put the facts on the record," said Modany. "At ITT Tech, we've reduced the average cost of our degree programs. We've become more affordable for our students, while the cost of attending many traditional schools continues to rise," he states.
Modany notes that the more than $170 million in scholarships awarded in 2013 further lowered the program cost for approximately 65% of ITT Tech students.
"Through these actions, we virtually eliminated the need for students to use private education loans," Modany noted. "Previously, approximately 70% of our students used private education loans to finance their education. Today, it's less than 0.1%."
The expected average net cost of an associate degree program at an ITT Technical Institute is in the range of $20,000 to $25,000 for students who begin their programs in 2014. Moreover, this cost covers many items, such as books and course materials, not covered in traditional schools' tuition.
"At the same time, our employable graduates are improving their income," said Modany. He noted that:
- • Approximately 70% of ITT Technical Institute employable graduates in 2013 obtained employment in positions using knowledge and skills taught in their program of study as of April 30, 2014.
- • While the average annual salary reported by a student before entering one of ITT Tech's programs of study was approximately $17,000 in 2011, the average annual salary reported by our 2013 employable graduates was $33,393 as of April 30, 2014.
- • ITT Tech's graduation rates are approximately twice the average graduation rates of community colleges, as calculated by the U.S. Department of Education's Integrated Postsecondary Data System.
"Our students tend to be older and independent," noted Modany. "Many are adults who are juggling work, family and school. The ITT Technical Institutes offer them options, such as year-round classes and numerous class schedules, that are not always available at public and other private institutions," he continues.
For 45 years, the ITT Technical Institutes have worked with employers to provide career-based programs of study that address the skills gap and offer students skills and knowledge employers are looking for. Over 2,300 employers participated in our recent program advisory committee meetings to provide feedback on our curricula and help the ITT Technical Institutes to develop curricula to meet the evolving needs of industry.
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 approximately 55,000 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, IN, ITT/ESI has been actively involved in the higher education community since 1969 and can be found online at www.ittesi.com.