The department also said in a news release it would increase its financial oversight of ITT.
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“It’s an important decision for them to make, because if they transfer their credits to another university or community college and continue on in the same program, they can’t get closed-school discharge”, she said.
The company has been under investigation by government authorities for allegations of fraud and deceptive marketing tactics.
Arthur Daly worked at ITT Technical Institute’s Youngstown branch for eight years.
One of the biggest for-profit chains in the nation, ITT had been closely monitored by federal officials since 2014, when the chain was late to submit an annual report of its finances to the government.
The move will impact hundreds of thousands of current students and alumni and more than 8,000 employees, according to ITT Educational Services.
Students who graduated from the school within the past six months would be eligible to have their loans forgiven if they want to start over at another school. About 40,000 students who were taking classes on campus and online are impacted by this situation, as are about 8,000 staff members who are without jobs. The D.O.E. said, if students were enrolled to ITT Tech in the last 120 days those students can apply to have their loans erased.
The company was also banned from accepting new students who rely on federal aid.
ITT operated vocational schools in 38 states. “I know a couple of students, they claimed they came here, they didn’t learn anything”. While both the ITT company and the Department of Education say that credits from ITT Tech are not likely to transfer to any other university, students do have two options.
Students go to ITT for an education, but what Matthew Bingham learned Tuesday morning is not what he expected. The college plans to accept applications from former ITT Tech students for Delgado Second Start classes beginning October 5 at multiple Delgado locations and online. 35 thousand ITT students across the country took up to $500 million dollars in loans.
On Wednesday, the U.S. Department of Education held a series of webinars to inform students about their options moving forward.
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While the closure of so many institutions comes as a shocker, those familiar with the company and its feud with the U.S. Education Department weren’t caught off guard.
