On Tuesday, September 6th 2016, ITT Technical Institute closed its doors forever. Like the students, faculty and staff alike had no warning from the school beforehand -- we were all planning our Fall quarter like nothing was different -- but somehow it wasn't a surprise.
The closure leaves 35,000 students without an educational path forward.
The school closed its more than 138 campuses around the U.S., effective immediately.
This morning, one of the nation's biggest for-profit colleges, ITT Tech, announced that it has permanently shut down its academic operations and fired the "overwhelming majority" of its more than 8,000 employees.
The Department requires letters of credit where it has concerns about a company's capacity to pay refunds and other debts. ITT's filing yesterday says the Department wrote to ITT on July 6 agreeing to allow ITT to increase its letter of credit on essentially an installment plan.
Last year ITT received $664 million in taxpayer money from federal student grants and loans nationwide, down from a peak of $1.1 billion a few years ago. ITT has some 130 campuses, with some 50,000 students, in 38 states. But ITT has a troubling record.
A website displaying McDonalds' famed golden arches and promising jobs at the fast-food empire quickly pushes visitors instead to recruiters at for-profit colleges, including those owned by two of the largest and most troubled companies in this sector.
Last week, troubled for-profit college company ITT Tech settled a series of lawsuits brought by shareholders that charged ITT with various securities law violations.
Both for-profit and non-profit colleges and universities are going to come under much more scrutiny very quickly as more
A federal whistleblower lawsuit against troubled ITT Tech, unsealed last week, reads like a greatest hits of abuses by America's predatory for-profit colleges. The suit alleges that ITT has defrauded taxpayers while systematically deceiving students and violating federal regulations.
On New Year's Eve, as you were preparing to celebrate with loved ones -- and not looking at news -- lawyers for for-profit ITT Tech were filing papers with the Securities and Exchange Commission
Some of the largest for-profit college companies -- including, last month, DeVry and Kaplan -- have recently left the industry's main trade group. Funded to boost its industry's fortunes, APSCU may instead have contributed to dragging the industry down. Now APSCU itself may be a sinking ship.
Vin Weber is much more than a Bush campaign advisor. He's a lobbyist who has pressed his former colleagues in Congress on behalf of clients like AT&T, the pharmaceutical trade association PHRMA, student loan giant Sallie Mae, and student debt collection companies Navient and ECMC.
The operations may well be in violation of federal statutes prohibiting deceptive marketing and unwanted telephone sales calls, as well as DOE laws and regulations barring payment of sales commissions to college recruiters. At the very least, they are guilty of using sleazy tactics to sell poor-quality products.
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