ITT Tech May Shut Down After Department of Education Threat

ITT TechITT Technical Institute may close its doors in weeks following sanctions handed down from the U.S. Department of Education. One of the most critical threats prevents the school from admitting students who rely on federal aid for tuition payment. The institution has been on the receiving end of negative reviews for decades with former students warning potentials to choose another venue for education.

The sanctions against ITT Tech are the equivalent of a death sentence. The educational facility can no longer receive tuition by way of federal aid and must increase its reserves by millions. The reserves are funds designated to support students in the instance that a company closes. Students who have already began classes can still use federal aid assistance as long as the institute remains open. However, those who have not begun taking classes cannot finance their tuition with federal aid.

The sanctions issued by the U.S. Department of Education does not come as a surprise to many. YouTube is full of bad reviews surrounding ITT Tech in addition to the host of negative claims that surface with a simple Google search. Just recently, a former student issued the following warning:

This place is the biggest scam ever. Stay away. Don’t waste your money. This school only wants your money, but lost their most important accreditation. They no longer issue useless diplomas, you now get a certificate. The credits you think you have earned are not transferable. It is a pyramid scheme, only the people at the top make money. Do not go!

Another former student, who attended the school over 20 years ago, could not land a job in his field after graduating from ITT Tech. He later went to another school and earned a degree that afforded him great job. He said:

ITT Tech is a trade school. It is not, and probably never will be an accredited college. When you get your diploma and go out into the workforce trying to land a job you will find out that employers do not look at ITT as a University and you will be told that they’re not looking for applicants with a trade school diploma!! Four years and $30,000 later it was too late for me! I eventually went back and earned a real accredited bachelor degree from DeVry University and that got me into the door of a great company making a six-figure income.

ITT Tech offers online and campus-oriented classes in information technology, electronics, health sciences, nursing, and business. Across 39 states, the school has 137 campuses. Last year the technical institute generated over $800 million in revenue including nearly $600 million from students with federal aid. According to the U.S. Department of Education’s secretary, John B. King, Jr., the decision made against the school is necessary to protect taxpayers and students.ITT Tech

On Thursday, the Education Department handed down a series of devastating restrictions that could put ITT Educational Services Inc. out of business within weeks. The government banned ITT Technical Institute from enrolling new students who rely on federal aid. Additionally, the school is required to warn current students that its accreditation is in jeopardy. Issuing loans for a higher education is not a problem, but failing to deliver adequate job training while pressuring new enrollees into taking on students loans in order to pay the school is.

Since 2014, the company has been under increased scrutiny by the Education Department.  The school is accused by federal and state regulators of misleading students about their employment potential upon graduation and the quality of programs offered. As it stands, ITT Tech may shut down following the death threat issued by the U.S. Department of Education.

By Cherese Jackson (Virginia)


Chicago Tribune: ITT Tech faces sanctions that could put it out of business within weeks
New York Times: Crackdown on For-Profit Colleges May Free Students and Trap Taxpayers
CNN Money: ITT Tech stops all new student enrollment
New York Times: Dept. of Education’s Letter to ITT

Photo Credits:

Top Image Courtesy of Melinda – Flickr CC License
Inline Image Courtesy of Steven Depolo – Flickr CC License
Featured Image Courtesy of Dwight Burdette – Wikimedia CC License

One Response to "ITT Tech May Shut Down After Department of Education Threat"

  1. Salley Swanke   March 13, 2019 at 9:40 pm

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