ITT Tech Closes Down All Campuses Across the Nation

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In the wake of devastating federal sanctions, officials from the Indiana-based ITT Educational Services Inc. announced Tuesday that all ITT Technical Institute campuses will be closing.

In late August, the U.S. Department of Education barred ITT (ESI) from enrolling new students who depend on federal aid and required the company to warn current students that its accreditation is in jeopardy. ITT also was told that it must increase its reserves from $94.4 million to $247.3 million, or 40% of federal student aid the company received in 2015.

The financial blow was too much for Carmel-based ITT to bear, so the decision was made to shutter operations, a move that will impact thousands of students and employees.

“It is with profound regret that we must report that ITT Educational Services, Inc. will discontinue academic operations at all of its ITT Technical Institutes permanently after approximately 50 years of continuous service,” said a statement from ITT. “With what we believe is a complete disregard by the U.S. Department of Education for due process to the company, hundreds of thousands of current students and alumni and more than 8,000 employees will be negatively affected.

“The actions of and sanctions from the U.S. Department of Education have forced us to cease operations of the ITT Technical Institutes, and we will not be offering our September quarter. We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a non-profit or public institution.”

The company said its focus and priority will be using the remaining staff to help displaced students with their records and future educational options. ITT had 40,000 students as of June 30.

Education Department Secretary John B. King Jr. has called the moves against ITT necessary to protect students and taxpayers. The college chain has faced fraud charges from the Securities and Exchange Commission. ITT also is being investigated by about 20 state attorneys general.

King previously deflected a question about whether his department was looking to put ITT out of business, again saying that the move was made with students and taxpayers in mind.

ITT offered on-campus and online classes in business, nursing and health sciences, electronics and information technology. It operated 137 campuses across 39 states. ITT last year generated $850 million in revenue, about $580 million of which came from federal student loans.

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Source: USA Today | Justin L. Mack, The Indianapolis Star