Blog: Obama administration kills ITT Tech, stranding 40,000 students and destroying 8,000 jobs

Blog: Obama administration kills ITT Tech, stranding 40,000 students and destroying 8,000 jobs
"Tyrants throughout history have known that beheading their enemies and placing the heads on pikes at the gates of their capitals sends a powerful message to everyone else.  
Behave yourself as we dictate, and you may survive.  Cross the king, and you are a dead man.

Something very similar, but updated and taken to a vast financial level, happened to ITT Tech, the privately owned trade school/university.  
As the Wall Street Journal explains, it crossed the king (in this case, the Obama Department of Education):

ITT Technical Institute folded on cue Tuesday after the Obama Administration issued a regulatory death warrant last month. ITT investors must be wishing they had ponied up for political protection like Laureate International Universities, the for-profit college that paid Bill Clinton $17.6 million to serve as its “honorary chancellor.”

ITT’s decision to close all of its 130 some campuses—stranding 40,000 students and 8,000 employees—comes after the Education Department barred new enrollees from tapping federal aid, delayed loan reimbursements and raised its collateral by $153 million. ITT had a mere $78 million on hand at the end of June and no way of meeting the Administration’s cash demand.

Note that these federal government actions are the product of bureaucratic discretion.  
The DoE demanded a ransom of an additional $75 million in order to stay in business.  
The point of the demand for collateral is to protect students and the taxpayers lending to them from a possible, at this point theoretical, harm arising from a collapse of the school.  
But the remedy merely cut to the chase and imposed the harm directly:
Read on!