The school year is over for 45,000 ITT Tech students before it even began, as the school’s parent company announced it will shutter all 137 ITT Technical Institute campuses in the U.S. However, roughly 35,000 of ITT’s 45,000 students will be eligible for some form of student debt relief, according to the U.S. Department of Education (ED).
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The closure comes on the heels of concerns and sanctions by the U.S. Department of Education about the company’s “administrative capacity, organizational integrity, financial ability and ability to serve students”.
ITT Tech had about 700 students enrolled in Missouri.
ITT spokespeople have accused the government of being “inappropriate and unconstitutional” in stopping funds “without proving a single allegation”. The closures leave 40,000 students with unfinished degrees and credits that may not transfer, and 8,000 employees without jobs.
It also means that taxpayers could be on the hook for millions of dollars in student loans.
The chain was banned August 25 from enrolling new students who used federal financial aid, because, federal officials said, the company had become a risk to students and taxpayers.
“My office stands ready to assist the ITT Technical Institute students impacted by the recent campus closings and who are looking for answers during this confusing time”, Tsongas said.
The company, based in Carmel, Indiana, says its move will have an impact on hundreds of thousands of students and alumni as well as more than 8,000 employees. The school now faces fraud charges from the Securities and Exchange Commission accusing executives of lying to investors about losses from its student loan program.
Many for-profit universities maintain political ties in order to ward off investigations into their practices and obtain business opportunities.
Only students now enrolled in the school or those who withdrew in the last 120 days before it closed are eligible for loan forgiveness.
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In Georgia, ITT Tech campuses were located in Douglasville, Kennesaw, Duluth and Atlanta.
