The company, which operates vocational schools, announced “with profound regret” in a statement Tuesday that it is ending academic operations at all of its more than 130 campuses across 38 states.
Advertisement
As a result, the federal education department placed a set of sanctions on ITT, including a ban on enrolling new students with federal financial aid – the company’s major source of revenue.
ITT’s closure followed the U.S. Department of Education’s decision to suspend federal aid to new students enrolling since ITT failed to meet its accreditor’s standards.
The company said its focus and priority will be using the remaining staff to help the tens of thousands of displaced students with their records and future educational options.
The ED is still investigating ITT Tech for evidence that it defrauded students in some way.
School won’t start this fall quarter for thousands of college students nationwide after ITT Technical Institute closed its doors Tuesday.
Other students want to know which credits will transfer to other schools.
Lance Permillion from LaPlace is one of a handful of ITT Tech students who rushed down to the St.
According to the Mass. Department of Higher Education, nearly 700 students receive Federal student loans to attend ITT.
Enrollment in ITT and the for-profit college sector as a whole has dropped sharply as the government has made moves to more closely regulate the schools.
ITT’s sudden closure now leaves students with large student loans, no degree and a lot of uncertainty. The Education Department also told ITT to drastically increase its cash reserves, and the combination seemed to make continuing operations untenable.
Advertisement
Students are now faced with two options: 1) trying to keep the course credits already earned by transferring to another school, or 2) losing their credits, becoming eligible for a federal loan discharge, federal officials assured.
