Interesting development with educational loans:

Two for-profit college executives have been charged with fraud - Yahoo Finance

And now shares of ITT are crashing. 

In early trade on Tuesday, shares of ITT were down as much as 8% after the SEC announced charges against former ITT CEO Kevin Modany and its current CFO, Daniel Fitzpatrick, for concealing the performance of some student loans guaranteed by the company from investors. 

In a release, the SEC said:

The SEC alleges that the national operator of for-profit colleges and the two executives fraudulently concealed from ITT’s investors the poor performance and looming financial impact of two student loan programs that ITT financially guaranteed. ITT formed both of these student loan programs, known as the “PEAKS” and “CUSO” programs, to provide off-balance sheet loans for ITT’s students following the collapse of the private student loan market. To induce others to finance these risky loans, ITT provided a guarantee that limited any risk of loss from the student loan pools.

SEC Sues ITT Educational for Allegedly Hiding Student Loan Disaster From Investors - Yahoo Finance

U.S. regulators sued ITT Educational Services Inc. and two of its top executives over claims they misled investors about the performance of student loans that were backed by the for-profit college operator. Shares plummeted.

Chief Executive Officer Kevin Modany and Chief Financial Officer Daniel Fitzpatrick, both of whom have previously announced they’re leaving the company, hid ballooning losses from student-loan defaults, the U.S. Securities and Exchange Commission said in a lawsuit filed Tuesday at federal court in Indiana