Shares of ITT Educational Services Inc. plunged 35% toward an all-time low, prior to a trading halt, after the U.S. Department of Education dropped the hammer on the for-profit education company. After ITT “failed to address” accreditor’s concerns last week, the DOE said it will no longer allow ITT to enroll students with federal aid. The company is also now required to increase the amount of cash reserves its sends the DOE, and the DOE is ending its installment payment plan for the amount previously required. In addition, the DOE said it is “slowing down” when ITT receives student aid from the government, “to ensure that ITT is handling its finances properly.” The stock, which was originally halted for volatility, and is now halted for news, had lost 62% year to date, while the S&P 500 has gained 6.2%.
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