After a ruling by the U.S. Department of Education regarding federal loans, Carmel-based ITT Technical Institute is ceasing all operations, the company announced Tuesday.
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Many alumni Fox13 spoke with are still wondering if their ITT Tech degrees are valid.
The Los Angeles Times reports the shutdown will affect about 35,000 students nationwide and cost 8,000 employees their jobs.
The chain was banned August 25 from enrolling new students who used federal financial aid because, Education Department officials said, the company had become a risk to students and taxpayers.
ITT Technical Institute has closed more than 130 campuses across the country after the school was accused of fraud and deceptive marketing.
“The closure of ITT Tech means the almost 7,000 student veterans using their Post-9/11 GI Bill benefits to finance their education can not complete their degree, even if they’re just a few credits short”.
“The explanation that they’re giving us, that it’s the government’s fault, everything’s the government’s fault nowadays, you all have to come better than that”, Permillion said.
ITT has also been ordered to pay $152 million to the department within 30 days to cover student refunds and other liabilities in case the company closes. If you miss payments, they could go into default and negatively impact your credit history. “But I caution students to look closely at their credits to make sure they fully understand which ITT credits transfer and which do not”, Brown said. Last week, the Department of Education took oversight actions to prevent ITT from continuing to add to that risk.
“I had already graduated with an Associate’s degree in electronics engineering technology from ITT Tech”, Martinez said.
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The school was housed in a business center office building on Solar Drive that also has a state Department of Motor Vehicles office. ITT student Philip Dean says, “When I read the email this morning, and kinda found out they’re not even going to start the next quarter, man that really laid into me”.
