The department also ordered ITT to set aside almost $250 million in case the company collapsed.
Advertisement
The finical blow was too much for ITT to bear, so the decision was made to shutter operations, a move that will impact thousands of students and employees.
The company has been under investigation by government authorities for allegations of fraud and deceptive marketing tactics.
ITT Technical Institute ceased operations nationwide Tuesday. Students who were enrolled at ITT Tech can apply to have any federal loans discharged or, in select cases, can transfer their credits to other institutions.
A big question among students will be about financial aid and if loans will be paid off. Students may be eligible for their loan to be paid off depending on when they attended ITT Tech.
“I had an idea when they said they were going to ban all new students, from coming in, so I kind of had that notion”, Miller said “But I was hoping”.
“Most of the credits are the ACICS, and no other schools receive those credits, only ITT”, said Beihl. “Kind of anxious. Does that affect our degrees for the people who have gotten them”, said Shana Andreotti-Briggs, a former student.
But ITT has been under the radar of both federal and state investigators over its recruiting tactics, lending practices and job placement figures.
The U.S. Department of Education has also set up a website for updates and information.
Your federal loan debt will be wiped away and you will have the option of restarting your education somewhere new. You need to have your transcript so they can see which credits transfer and your financial aid could transfer too. 35 thousand ITT students across the country took up to $500 million dollars in loans.
“Many hardworking NY students have enrolled at ITT campuses across the state and invested significant time and resources into their education”.
Advertisement
When education officials announced the sanctions against ITT last month, they said it wasn’t meant to force the chain to close.
