ITT Educational Services CEO Kevin Modany told reporters on a conference call Tuesday that ITT was the victim of a “regulatory assault” and never had the chance to defend itself.
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The parent of ITT Technical Institutes said today it is shuttering all academic operations at the for-profit colleges, ending classes for about 40,000 students and idling almost all of its more than 8,000 employees.
The for-profit technical training school has more than 130 campuses in 39 states, including one in Robinson just off Parkway West.
The nationwide shutdown comes shortly after the Department of Education banned ITT Tech from enrolling new students who use financial aid.
It’s a problem that’s probably had more of an impact over time than it has in the wake of the ITT scandal, with even some students getting confused over their school’s initials.
US for-profit college operator Education Management Corp also said in November that it would to pay a record $95.5 million to resolve charges that it used high-pressure sales tactics to mislead students.
“For what appears to be political reasons, there seemed to be an outcome in mind that was going to be forced here”, Modany said. While getting federal financial aid is a good thing, and there is nothing wrong with accepting it, ITT Tech’s recruiters preyed on students that had no idea of the financial burden involved in taking out a federal student loan, and shouldn’t have been seeking a technical career in the first place.
ITT has operated campuses in Columbus and Hilliard.
Department officials have been closely monitoring ITT’s operations since 2014, when the chain was late to submit an annual report of its finances to the government. It wasn’t immediately clear what would happen to students.
Students who were using GI Bill benefits to attend ITT Tech may not be so lucky.
Several students, hoping to get answers, showed up to find an empty parking lot and locked doors.
“I took all my classes and everything, and I just have to sign some papers that say, ‘Oh, here’s your diploma, ‘” said Odell.
ITT Tech has two locations in Kansas, one in Overland Park and one in Wichita. Federal authorities said they moved to protect both taxpayers and students. Up to $500 million in outstanding loans could be erased.
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A note left on the doors to the Middletown branch Tuesday read, “We deeply regret after 57 years, Carousel Beauty College will not reopen its five campuses in Southwest Ohio after the Labor Day holiday”.
