NEW YORK (MainStreet) — Rohit Chopra's parting shot as the Consumer Financial Protection Bureau's student loan ombudsman was to write letters to search engine vendors--Bing, Google and Yahoo--with a warning that their flag ship products were being used to sell fraudulent products to unsuspecting people with student loans.
A little more than a week later, he's still writing letters, but this time at as senior fellow at the Washington, D.C.-based Center for American Progress about ITT Educational Services (ESI), the parent company of ITT Tech, a for-profit college chain that is under siege by state and Federal regulators. His first one wasn’t sent to a student organization, but to ITT shareholders.
Chopra leveraged the novel idea that if ITT students do well, so will its shareholders.
Both of them are the pits. According to USA Today's 2013 list of Red Flag schools whose student loan default rate was higher than its graduation rate, 45 of the 265 that made the list were ITT schools. ITT credits typically don't transfer to other schools, and it's hard to find former students who are satisfied with their ITT experience. The school has been compared to the now-defunct Corinthian Colleges.