CARMEL, Ind., May 13, 2014 /PRNewswire/ -- 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.