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In 1946, ITT Tech was established as Educational Services, Inc.[10] From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of the ITT Corporation (as “ITT/ESI”).[11] During its years in operation, it was based in Carmel, Indiana.[12] By 1986, all its institutions had become known by the common name “ITT Technical Institute.”[citation needed] By 1999, ITT Corporation had divested itself completely of ITT Tech’s shares. The schools were allowed to continue using the “ITT” name under license.[13]

In about 2004, ITT Tech came under fire for questionable practices including allegations of high-pressure recruiting tactics, falsified paperwork, high default rates on ITT Tech student loans, and inadequate educational standards.

In the mid-2000s, CEO Rene Champagne cashed out more than $50 million in stock,[14] before stepping down from the position in 2007.[15] Kevin Modany was appointed as CEO, while maintaining all of the positions (president, COO, and director) he had held from early June 2002.[16]

It acquired the financially struggling Daniel Webster College (DWC) in Nashua, New Hampshire[17] in June 2009 for $29.3 million.[18][19][20] The nonprofit college converted into a for-profit institution.[21] In 2013, ESI began operating public charter schools in three cities: Indianapolis, Tempe, and Troy, Michigan.[22] In charter documents, the company referred to potential students as “educational have-nots.”[23]

ITT Technical Institute charged among the highest tuition fees in the industry – between $45,000 to $85,000 in 2014 – and had the industry’s highest rate of loans that went into default within two years of attendance.[24][25]

In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3,000,000 shares of ITT Educational Services stock.[26] In July 2016, ESI reported that enrollment was projected to drop by 30% to 40% from 2015 to 2016.[2] In August 2016, the U.S. Department of Education barred the company from enrolling new students who use government loans. On the 30th of the same month, ITT Technical Institute stopped accepting applications for new enrollment.[27][28] At that time, ITT Tech said that existing students could still finish their studies. ITT Tech also said that they would continue to operate until the last of its enrolled students either graduate or drop out.[28] However, on September 6, 2016, ITT Technical Institute announced that it was shutting down all of its campuses, effective immediately.[29]