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Wednesday, September 7, 2016

ITT Technical Institute Shuts Down 130 Campuses

Nearly 40,000 students and most of the 8,000 employees from ITT Technical Institute campuses across 38 states faced bad news on Tuesday morning, [September 6] when ITT Educational Services Inc. announced that it is closing down each of its 130 locations, effective immediately.

News of the school's closure comes a month after the U.S. Department of Education ordered the for-profit operator to freeze enrollment of any new students who receive public dollars via federal aid. The company behind the institution had been under investigation by the Massachusetts Attorney General, the Consumer Financial Protection Bureau and the Securities and Exchange Commission, among a dozen other state and federal authorities accusing it of financial mismanagement.

ITT Tech was noted among for-profit schools, for incurring one of the largest pools of revenue, 80% of which came from Pell Grants and federal student loans. But it sinks with a for-profit college industry that has taken a hit in recent years, with the government cracking down on its recruitment tactics and heavily scrutinizing its funds. Such operators as DeVry Education Group and Apollo Education Group, have been forced to downsize as enrollment has dwindled, and the ability to secure financial backing has become increasingly difficult.

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