In a statement, the company blamed sanctions by the U.S. Department of Education freezing financial aid for students.
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The Kansas City Star reports the action reflects concerns by the U.S. Department of Education about the company’s “administrative capacity, organizational integrity, financial ability and ability to serve students”.
The sudden announcement is leaving an estimated 8,000 ITT Tech employees without jobs andand impacting more than 35,000 students who are now enrolled in classes at the institute.
ITT announced Tuesday it was ceasing operations. He said ITT’s closing was abrupt – way more sudden than for-profit Corinthian College’s closing for the same reasons previous year. Jasmine Nunez was also a student at the same location.
As of September 6, the company has terminated the “overwhelming majority” of its 8,000 employees, the statement says. Dean says, “I know there are tons of other people in my same situation, that have moved, relocated, relocated jobs, all sorts of stuff, just to go to school here”.
Education Secretary John King said the government is taking action to protect students and taxpayers following “troubling” findings about the company.
Central Piedmont Community College is ready to help students displaced by the closing of all ITT Tech campuses nationwide this week, including two in Charlotte. ITT Educational Services says it was forced to take the action after the U.S. Department of Education issued sanctions August 25, including a ban on enrolling new students who rely on federal financial aid.
We spoke with one student who asked us not to share her identity. Students we talked to are concerned because they said a lot of the classes here won’t transfer to a junior college or four-year university.
ITT students also could try to have private student loans forgiven and get compensated for cash tuition payments through the state’s Student Tuition Recovery Fund, said Robyn Smith, a senior attorney at the Legal Aid Foundation of Los Angeles. Critics have said recruitment at many for-profit schools is aggressive, promises of future employment are deceptive, and that students who graduate with degrees from them are likely to face debt they can’t pay.
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The school’s 35,000 students, were informed of their misfortune by email Tuesday morning.
