PHOENIX — Universal Technical Institute, Inc. (NYSE: UTI) has developed a $10 million private loan initiative designed to help students facing the challenges of bridging the tuition gap in today’s tight credit market. The program assists select students who have exhausted traditional Title IV student financial aid eligibility, are unable to qualify for credit-based loan programs, and therefore may not otherwise be able to attend UTI.
Loans will be originated by 1st Century Bank, N.A. (OTCBB: FCTY) and serviced by ACS Education Services, Inc. (NYSE: ACS). To ensure that the terms and conditions of these loans remain favorable for students, UTI will bear ultimate financial responsibility for the re-payment of loans originated under this program.
“Traditional federal student aid and alternative student loans are still the first and best sources of funding for our students, but this program will greatly assist those who would otherwise be unable to pursue their education goals because of an inability to obtain reasonable loans through other sources,” said Kimberly McWaters, UTI president and CEO. “Helping eligible students bridge the tuition gap on a limited basis is a good use of UTI’s strong balance sheet and further enhances our capacity utilization.”
UTI has additional programs designed to help students with their tuition and school expenses, including the recently announced UTI Foundation. As the philanthropic arm of UTI, the Foundation provides qualified students with scholarships, grants and other programs. According to Veronica Meury, UTI Foundation vice president and executive director, the new non-profit has awarded nearly $400,000 in grants and scholarships to students already this year. The UTI Foundation, which recently completed its formation period, anticipates awarding nearly $1 million in 2008 to students pursuing technical training programs at UTI’s 10 campuses nationwide.
Another innovative UTI program provides support to eligible students once they have begun classes. The UTI Foundation Student Emergency Fund, administered by the UTI Foundation, raised more than $130,000 to aid UTI students this year. Funds for the program come from employee fundraising events and contributions from the company, its employees and alumni. Eligible students can receive food, toiletries and clothing, as well as grants for such critical expenses as rent, utilities and healthcare bills. “The UTI Foundation Student Emergency Fund can make a big difference in students’ ability to stay in school and finish their technical education,” said Meury.
“UTI is committed to changing the world one life at a time,” added McWaters. “Our new private loan program, UTI Foundation and UTI Foundation Student Emergency Fund are all examples of our goal to make a difference in the lives of our students. We believe that those with a passion for the automotive, collision repair, diesel, marine, motorcycle and NASCAR industries should be able to pursue and focus on their technical education without struggling to bridge the tuition funding gap.”
For more information, visit www.uti.edu.
About Universal Technical Institute, Inc. (UTI):
Universal Technical Institute, Inc. is a leading provider of technical education training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. The company offers undergraduate degree, diploma and certificate programs at 10 campuses across the United States, and manufacturer-sponsored advanced programs at 18 dedicated training centers. Through its campus-based school system, Universal Technical Institute, Inc. offers specialized technical education programs through several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI). For more information, visit www.uti.edu.
Safe Harbor Statement:
Statements in this news release concerning the future business, operating results and financial condition of the company are “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the company’s actual results include changes to federal and state educational funding, construction delays for new or expanding campuses, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by the company, increased investment in management and capital resources, the effectiveness of the company’s recruiting, advertising and promotional efforts, changes to interest rates and low unemployment. Further information on these and other potential factors that could affect the company’s financial results or condition may be found in the company’s filings with the Securities and Exchange Commission, all of which are incorporated herein by reference. The company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
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