But in an effort to help the students find out their future options, the Department of Education has a team of employees ready to answer telephone questions at 800-4FEDAID and a website for ITT students.
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Other education companies had made overtures to buy the chain’s schools over the past year, Modany added, and ITT had offered to “wind down” its operations gradually if federal officials eased some of the sanctions against it, but he said federal officials rejected those options.
ITT Educational Services, a for-profit college chain of 130 US campuses each housing an ITT Technical Institute, announced Tuesday it would be shutting down all of its USA campuses, including one in Durham. 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. But even ITT said it’s unlikely other schools will accept ITT credits. He said ITT’s closing was abrupt – way more sudden than for-profit Corinthian College’s closing for the same reasons a year ago.
“I’m sure that there are lots of students who have no idea what they’re supposed to do at this point”, he said. Education Department leaders are also urging community colleges to contact ITT students and welcome qualified students.
Martinez finished that degree at the Oakland, Calif., campus.
“Basically they have to come up with about $153 million in 30 days”, Ben Miller with the Center for American Progress said at the time. “In response, over the last couple of years, we at the Department of Education have increased our financial oversight over ITT and required the school to boost its cash reserves to cover potential damages to taxpayers and students”. Jessica Whitney, the director of the office’s Consumer Protection Bureau, said the investigation was prompted by concerns over whether ITT was using unfair and deceptive practices in trying to recruit students.
The U.S. Department of Education said Tuesday students now enrolled at ITT or those who withdrew within 120 days of its closure may be eligible to have their federal student loans discharged. The fate of ITT’s brick-and-mortar school, Daniel Webster College, is still unclear, the Journal reported.
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“Ultimately our responsibility is not to any individual institution – it’s to protect all students and all taxpayers”, he said. “I have no doubt that our decision to take action was the right one in service of these goals”.
