For-Profit School ITT Technical Institute Closes Campuses Nationwide

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DALLAS (CBSDFW.COM/AP) – Following a recent fight with the U.S. Department of Education,  ITT Educational Services says it is ceasing operations of all its ITT Technical Institutes permanently.

“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. 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,” said a statement from the company on Tuesday.

ITT has three campuses in North Texas; Richardson, Arlington, and DeSoto.

In August, the Department of Education banned ITT Educational Services from enrolling new students who used federal financial aid.

The for-profit tech school has been the subject of state and federal investigations focusing on its recruiting and accounting practices.

Among the measures proposed by the Department of Education, ITT was been ordered to pay $152 million to the department within 30 days to cover student refunds and other liabilities in case the company closed.

The chain, based in Indiana, is still paying another $44 million demanded by the department in June for the same reason.

Department officials have been closely monitoring ITT’s operations since 2014, when the chain was late to submit an annual report of its finances to the government.

Under President Barack Obama, the Education Department has led a crackdown on for-profit colleges that have misled students or failed to deliver the results they promised. In 2014, the department cut off federal aid to the Corinthian Colleges chain amid allegations of fraud, leading it to close or sell all of its schools.

(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments

One Comment

  1. Charle says:

    I went to that school around 2005. I wonder now can I get my college loans forgiven since they are just a scam now?

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