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.
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“It is with profound regret that we must report that ITT Educational Services, Inc. will discontinue academic operations at all of its ITT Technical Institutes permanently after approximately 50 years of continuous service”, read a press release from the institution.
ITT’s shutdown will – nationally – cost more than 8,000 employees their jobs and affect about 35,000 students. The department cut off ITT from the federal financial aid program, automatically deeming new students unfit for federal student loans or Pell grants-which is crucial for the operation of for-profit institutions.
For students who had a degree in progress, current credits may not transfer because not all colleges and institutions have an equivalent program to ITT Tech.
Earlier this week, ITT Technical Institute students from around the country, including those attending the three Alabama campuses in Bessemer, Madison and Mobile, found their classrooms vacant following the official closure of all campuses nationwide. ITT had 40,000 students as of June 30, according to the Star.
“The explanation that they’re giving us, that it’s the government’s fault, everything’s the government’s fault nowadays, you all have to come better than that”, Permillion said. There are two ITT Tech campuses in South Florida.
As for the students ITT Tech left behind, they are left with student loans and credits that most likely will not transfer.
“I’m sure that there are lots of students who have no idea what they’re supposed to do at this point”, he said. You should continue making payments on your student loans while your discharge status is being determined, the ED recommends.
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“Our focus and priority with our remaining staff is on helping the tens of thousands of unexpectedly displaced students with their records and future educational options”, the statement said.
