The for-profit school was the subject of state and federal investigations focusing on its recruiting and accounting practices.
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Last month, the Department of Education banned ITT Educational Services from enrolling new students using federal financial aid funds after it was determined the company was “not in compliance” with accreditation criteria. ITT was also ordered to pay millions to the department to cover student refunds and other liabilities in case the company closes.
The closures affect students and teachers here in Tucson, who attended and taught at 1455 W. River Road.
Days before those sanctions were announced, ITT’s accreditor reported the chain had failed to meet several basic standards and was unlikely to comply in the future.
ITT was one of many for-profit colleges heavily criticized in recent years for charging expensive tuition that was largely subsidized by federal students loans, and then not following through with promised results on job placement, driving graduates into heavy debt.
Almost 12,500 students used the GI Bill at ITT in 2015, according to data from the national advocacy group Student Veterans of America.
“In the past, department officials were literally on Corinthian campuses telling students to enroll in places like ITT Tech”, he said. The Carmel, Indiana-based for-profit school chain will lay off more than 8,000 employees after about 50 years in operation.
“At the end of the day I signed up here with ITT Tech, so I’m blaming them”, said Julien. Last week, Senator Dick Durbin called on IL community colleges to assist students.
– Those now or recently enrolled at ITT may be eligible to have their federal student loans for their program at ITT discharged and will have the option of starting their education over at another institution. Up to $500 million in outstanding loans could be erased. Both are officially closed.
In an editorial, The Wall Street Journal recently called the Education Department’s decision to cut off funding a “lawless execution” and said the action was taken without proving a single allegation.
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“Ultimately our responsibility is not to any individual institution – it’s to protect all students and all taxpayers”, he said. “With ITT Tech’s closing, we’ve got to ensure its former students aren’t abandoned, and I’m looking forward to working with the department of education to provide clear information on options available to those students that’ll provide them with a job-ready education”.
