Profit ITT Technical Institute Closes Campuses, Lays Off Nearly 8000

ITT Technical Institute announced Tuesday it is closing 130 campuses across the country, after the department of education cut off access to federal financial aid for new students.

The education department says ITT had more than 130 campuses nationwide in 38 states, and that it had 45,000 enrolled students past year.

The move will impact hundreds of thousands of current students and alumni and more than 8,000 employees, according to ITT Educational Services. In a statement, the company blamed sanctions by the U.S. Department of Education freezing financial aid for students.

The Department of Education announced in late August it would deny federal loans for new ITT Tech students.

In Tuesday's email, the school called the Department of Education's restrictions "unprecedented" and said they proposed alternatives like selling their schools to another agency that would allow courses to continue.

While Ivy Tech will not accept ITT credits, it is working to develop options for ITT students. It was rarely used until the 2014 collapse of for-profit chain Corinthian Colleges, which forced the Education Department address re-evaluate the standard used for reviewing appeals for debt relief.

Students who graduated from the school within the past six months would be eligible to have their loans forgiven if they want to start over at another school.

The students in Utah that were planning on attending ITT Tech will be getting into another college.

The fall semester has just begun on most college campuses, but tens of thousands of students in 38 states were told today that, instead, their college is closing its doors.

Read the full statement from ITT Tech, here. We communicated with all students this morning informing them of key information including how to receive grades and transcripts, articulation agreements, what other schools are near them that may offer similar programs of study. Last year, the institution reported almost $850 million in total revenue, with about $580 million of that coming from federal aid. Numerous 45,000 new students enrolled past year were able to pay only through federal loans and grants.

"My feeling is that over the next several years, we're gonna see a lot more schools close", he said.

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