Why was ITT singled out by the Federal Government when no different than many other places?
There are explicit rules for the for-profit institutions to gain access to student loan funding form the feds. The one that ITT specifically ran afoul of is their "job placement" claims were basically bullshit. They claimed a 90+% placement rate, but the truth is they couldn't substantiate that with actual paperwork and documentation, and many of the people they could substantiate placing weren't making jack-shit.
They were operating an ongoing fraud, and were validly and correctly "singled out" for doing so. They repeatedly, for many many years, lied to their accreditation body to continue their access to the federal student loan program fraudulently, despite knowing they legally didn't have any business getting funds through that program.
In short, there's a gulf thousands of miles wide between what ITT did and what "many other places" are doing. And I'll note: With the demise of the ACICS we're going to find a lot of these for-profit "schools" can't get a new accreditation and end up shutting down. This is, in broad strokes, a "good thing," and you should assume ITT is the first, not the last, school of this type that will end up shutting down.