ITT Tech shuts down all its schools; one student says he’s ‘angry times 10 million’

Source: Jim Puzzanghera and Ronald D. White, Los Angeles Times, September 6, 2016

The company that operates the for-profit chain, 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. … 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 start over at another school, Education Department officials said. … ITT Educational Services Inc. said it would focus on helping its students obtain their records and pursue their educations elsewhere. … The company has operated vocational schools on more than 130 campuses in 38 states, often under the ITT Technical Institute name. Last year, it enrolled 45,000 students and reported $850 million in revenue. … ITT’s closure comes after Corinthian Colleges Inc. shut the doors of its schools and filed for bankruptcy last year. The Education Department agreed to forgive $171 million in loans owed by former students, most of them in California. …

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ITT Tech shutdown creates uncertainty for 40,000 students, 8,000 employeesSource: Robert Channick, Chicago Tribune, September 7, 2016

ITT Technical Institute is ceasing operations at its more than 130 campuses nationwide after the Department of Education cut off access to federal financial aid for new students. The immediate closures by for-profit ITT Educational Services will end the fall quarter before it starts for 40,000 students, and will leave more than 8,000 employees without a job, the Carmel, Ind.-based company said Tuesday. It also raises questions about everything from outstanding student loans to finding a new school. Secretary of Education John King Jr. addressed those issues in a blog post Tuesday. … Last month, the Department of Education banned ITT Educational Services from enrolling new students using federal financial aid funds after it was determined the company was “not in compliance” with accreditation criteria. It also announced stepped-up financial oversight of ITT, building on measures put in place in 2014 due to “significant concerns” about the school’s organization and “financial viability.” In a statement Tuesday, ITT said the federal sanctions were made “with a complete disregard by the U.S. Department of Education for due process,” forcing the decision to close its doors after 50 years. … Citing increased financial risk, the Department of Education told ITT on Aug. 25 the company needed to increase its $94 million surety requirement to more than $247 million, which represented 40 percent of the federal financial aid received by its schools last year. …