An ITT student going by the name Willie, agreed.
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“Experts called it a death sentence. They should have paid more attention to what’s going on in their own business and what’s going on with the students”, said Ricardo Lara, ITT Tech student.
“These unwarranted actions, taken without proving a single allegation, are a ‘lawless execution,’ as noted by a recent editorial in the Wall Street Journal”, the school maintained in its news release. Effective today, ITT said it cut most of its 8,000 employees. ITT has been sued by the Consumer Financial Protection Bureau over loan practices in addition to a spate of other lawsuits brought by states and students alike.
Investigations into the school include one from the office of the Iowa Attorney General.
“Some of ITT’s attitude is justified”, Credit Suisse analyst Trace Urdan tells them.
The U.S. Department of Education had every right to withdraw funding from its institutes. “They did this to themselves”.
Last year, Corinthian Colleges, which had 28 campuses, including Everest Colleges in San Bernardino and Ontario, shut down after it was fined $30 million by the Education Department. Roughly 40,000 students across the country are now left wondering if all they have worked for was for nothing.
Roughly 35,000 students will be impacted by these closures and will either have to apply for loan discharge or transfer their credits to the few universities that accept them.
But there were other issues, too.
Last month, the Education Department banned the school from enrolling new students who receive federal aid after its accrediting agency cited chronic mismanagement of finances and questionable recruiting tactics. We let education become a profitable enterprise, and we let ITT make it one by exploiting people who would not otherwise have gone to college.
In light of ITT Technical Institute’s nationwide closing, students could seek to cancel $500 million in federal loans.
“We’re the ones getting punished by this, not the shareholders for ITT Tech”, Cooley said. The closure comes one week after the school stopped signing up new students, following accusations from the Department of Education that ITT was misusing federal funds.
Department Undersecretary Ted Mitchell, however, said ITT never made a formal proposal, and that the department’s “informal conversations” with potential buyers had failed. According to Niche.com, the Clovis campus served almost 500 students.
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Some 35,000 students now face a hard choice.
