ITT Tech shuts down all its schools
The company that operates the for-profit vocational school chain ITT Technical Institute, with more than 130 campuses in 38 states (one of the country's largest) announced that it was permanently closing all its campuses nationwide. It blamed the shutdown on the recent move by the U.S. Education Department to ban ITT from enrolling new students who use federal financial aid. Like many other for-profit college operators, ITT has faced federal and state investigations of its predatory recruiting and shady accounting practices, with up to 60% of students defaulting on loans.
The shutdown will affect about 35,000 students who were preparing for the start of classes this month. It will also cost more than 8,000 employees their jobs. Those students and others who left the school within the last 120 days would be eligible to have federal loans for their ITT education forgiven if they want to give-up any earned credits and start over at another school, Education Department officials said.
In addition to the ban on ITT's enrollment of new students who used federal aid, the U.S. Education Department also prohibited ITT from awarding its executives any pay raises or bonuses. Now, sources claim ITT Tech is preparing to file for bankruptcy.
The shutdown will affect about 35,000 students who were preparing for the start of classes this month. It will also cost more than 8,000 employees their jobs. Those students and others who left the school within the last 120 days would be eligible to have federal loans for their ITT education forgiven if they want to give-up any earned credits and start over at another school, Education Department officials said.
In addition to the ban on ITT's enrollment of new students who used federal aid, the U.S. Education Department also prohibited ITT from awarding its executives any pay raises or bonuses. Now, sources claim ITT Tech is preparing to file for bankruptcy.