Has Daniel Webster College made a bargain with the Devil?
Back in April, the Nashua, NH college announced that it would sell itself to ITT Educational Services, a for-profit company that manages over 100 technology-oriented schools in 37 states. Legally, a judge has to approve moving the school out of a charitable trust before it can be sold. But considering that the school owes $23 million and has lost money nine of the past ten years, is there really any doubt? The alternative is to shut the school down.
The same thing happened recently to Waldorf College in Iowa and the College of Santa Fe in New Mexico. This is a growing trend. As small and mid-sized schools struggle with costs and enrollment, it’s likely to accelerate.
Education is big business. And business is not the Devil. If ITT can make a profit while offering competitive products, good for them.
Douglas R. Tengdin, CFA
Chief Investment Officer
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