Merely a week after ITT Tech stopped enrolling students, they’ve announced the company will be closing for good. ITT was forced to shut down as it’s no longer able to accept federal aid; meaning their incoming students would not have access to federal student loan money. With their high tuition costs, the company had to call it quits.
Along with other for-profit colleges, ITT has been widely scrutinized for getting their students to take out thousands in government grants and loans and then failing to assist their graduates with job training and placement. In 2015 alone, ITT Tech received about $580 Million in federal money according to the Department of Education.
A shocking announcement from The Atlantic states that, “students pursuing bachelor’s and associate’s degrees at for-profit colleges saw their earnings drop, compared to before they started the program.” This is to say that prior to attendance at ITT, with the debt loads they’ll have to pay off as a result of attending the school, the students are better off having not gone to one of its many campuses.
This is a sad reality for many of the attendees who are forced to pay back tens of thousands in student loan debt and are still struggling to find work. If it feels like you qualify for Student Loan Forgiveness programs, please call us at (844) 346-3705.
15 former students alleged misrepresentation, fraud and concealment by ITT arising out of their recruitment and education at ITT campuses. In September 1998, ITT settled all of the claims.
Consumer Finance Protection Bureau (CFPB) sued ITT, alleging that they used high-pressure tactics to coerce students into high-interest private loans that were likely to end in default.
In a 2015 federal whistleblower lawsuit, a former ITT Tech dean of academic affairs alleged that the company (1) directed recruiters to use coercive tactics to pressure students into enrolling, (2)admitted students who were unable to succeed at the school, (3) unlawfully paid sales commissions to recruiters, and (4) lied to students about their financial obligations and transferability of ITT credits to other schools, and about the jobs students could expect to get after graduating.
On August 30, 2016, ITT Technical Institute stopped accepting applications for new enrollment. On September 6, 2016, ITT Technical Institute announced that it was shutting down all its campuses effective immediately.
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