But according to the government, ITT couldn’t make the grade. The department also said in a news release it would increase its financial oversight of ITT.
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California’s Department of Consumer Affairs’ Bureau for Private Postsecondary Education also banned ITT from accepting new students in the state while announcing plans to yank ITT’s credentials to operate in California, the Los Angeles Times reported.
The company said it will eliminate the positions of most of its 8,000 employees nationwide. 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.
The company said it took the decision after searching for alternatives, including transfer of the schools to a non-profit or public institution.
In announcing those actions, federal education officials said ITT is “not in compliance, and is unlikely to become in compliance” with accreditation criteria.
This story will be updated. Among the measures, ITT was ordered to pay $152 million to the department within 30 days to cover student refunds and other liabilities in case the company closes.
ITT had 14 campuses in California including San Bernardino and Corona.
We spoke with one student who asked us not to share her identity.
“ITT Tech had a spigot problem and was overly-dependent upon taxpayer dollars”.
ITT Technical Institute said Tuesday it was immediately closing all campuses, more than 130 in all, throwing into doubt the future education of thousands of student veterans attending there. “Kind of sad for the kids and students that are here now that are either a semester away from graduating and will never get anything, and the ones who just started because they have to start all over again”.
The for-profit college was recently banned from enrolling any students who require financial aid.
Forty-thousand current ITT Technical Institute students will have to find a new school.
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Cincinnati State said it’s offering free educational coaching and a review of students’ academic credits, career goals and financial aid status.
