The rapid decline of the ITT for profit-college may represent a pivotal moment in modern history, as seen in rising challenges to predatory capitalism. ITT is in deep trouble, subject to numerous lawsuits, from the Securities and Exchange Commission and Consumer Finance and Protection Bureau (CFPB) for defrauding students. The con that is for-profit education is finally being exposed, and these “higher learning” institutions are increasingly recognized for their rapacious treatment of students. Within this context, the Wall Street Journal seeks to reframe the attack on ITT as the work of the big, bad government, which is committed to stifling the liberties inherent in private enterprise. Contrary to the paper’s propaganda, however, the narrative of for-profit colleges as a beleaguered David facing the onslaught of a brutal government Goliath bears little resemblance to reality.
In a recent piece in their “Review and Outlook” section titled “Obama’s For-Profit Execution,” the Journal attacks the Obama administration for trying to “kill a company without proving a single allegation” in court. The paper laments the Department of Education for requiring ITT to increase its letter of credit from 10 percent to 20 percent, in light of the possibility that the corporation will lose its accreditation in the near future. A letter of credit refers to the collateral a for-profit institution must maintain to assure that it can pay back money owed to the federal…