ITT Educational Services, Inc. announced that a scholarship increase helped in making more students sign up compared to the previous forecast made towards the end of June, offering some kind of relief to the sector of US for-profit education which was struggling.
The data released, first coming from ITT ever since the month of May has begun, more than made the shares of the company doubled during morning trading. On the afternoon of Friday, they increased around 60 percent.
There was also an increase in the shares of the other existing education providers which were for-profit, which include Corinthian Colleges Inc, as well as Apollo Education Group.
The industry for for-profit education has been hit by this year’s increased regulatory scrutiny. The sector lost its mojo in the year 2010, when the government investigations unveiled facts saying that there were high loads of student debts and job prospects which were low.
ITT, that withdrew the 2014 forecast it gained in May, as well as made warnings that there would be a fall on enrolments again, made statements on Friday saying that it offered an additional 40 percent to this year’s scholarships.
The company also said it had boosted its school advertisements, which were parts of the ITT Technical Institute program, which are representations of the majority of the colleges it has.
ITT, offering vocational courses just like drafting & design, nursing and business, is also operating the New Hampshire-based Daniel Webster College.
Trace Urdan, an analyst from Well Fargo, said to Reuters that it is the very first company sharing enrolment data after the issues in Corinthian and alleviates risks that students already turned away entirely from the schools’ vocational course offers.
The latest reports from Corinthian indicate May’s quarterly results and is now facing the ascending task of putting the majority of the schools on sale for the continue its receipt of federal aid.