“ITT Tech closed now” - is one of the main recent news that affected the whole education system. The question now is what happened to ITT tech students and provide you with all ITT tech news update. ITT Tech closed according to the US Department of Education, even though this commercial college had branches in 38 states.
About ITT Tech
ITT technology opened in 1946, and in 1969 established its headquarters in Indiana. It was one of the most significant commercial technical institutes. ITT Educational Services, Inc.was focused its activities on undergraduate and graduate programs, providing students with the development of skills and knowledge to further implementation of their goals.
ITT Educational Services was one of the top private college’s systems with advanced technology-oriented curricula. Everyone was welcomed to the institute, including students from other countries.
The curriculum, which primarily aims to obtain an initial degree and bachelor’s degree, was designed to help students begin preparing for their future work in various fields of science and industry, including electronics, computer network systems, computer modeling, and design, development Networks, multimedia, software applications and programming, industrial design, automated production, computer visualization, telecommunications and much more.
Most curricula of the Technical Institute ITT combined the traditional teaching of the theory of subjects with the application of this theory in practice when a significant part of the educational process is devoted to practical research in laboratories. Advisory committees consisted of entrepreneurs, and representatives of local firms help each ITT Technical Institute to periodically reassess and update curricula, equipment, and laboratories
What happened?
The American company ITT Educational Services Inc announced the foreshadowing of its activities. This institute managed 130 US schools serving 45,000 students, which shows the scale of the enterprise. The news that ITT Tech closed was published after the Ministry of Education prohibited it from receiving federal financial assistance, such as student loans and Pell Grants.
This decision resulted in the dismissal of 8,000 employees of the Institute. The commercial college announced that the move would also affect hundreds of thousands of students and graduates.
“We made this decision after a grueling search for an alternative, and we even considered the option of transferring our educational institutions to a non-commercial format of work,” ITT Tech said.
The ITT Tech closed all its branches after the Department of Education banned the college on August 25 to recruit new students receiving federal financial assistance.
Students who are currently enrolled in the ITT or have been enrolled in the last 120 days are eligible to forgive the federal loan under the appropriate program, as stated in the department of education, headed by Ted Mitchell. Students currently enrolled in this institution may still be enrolled there with the hope that when they close the school, they will be entitled to a closed school dismissal
If all students who are admitted to participate in the program decide to use this program, the federal government will have to write off loans totaling $ 500 million.
That’s not all
ITT is the second major commercial college that has been closing in the last year. Corinthian Colleges closed in 2015 when the Department of Education significantly strengthened control over school access to funds allocated to students by the federal government.
Students’ credit funds allocated at the expense of taxpayers are essential to bread for commercial, educational institutions. For example, ITT revenue in 2015 amounted to $ 850 million, of which 68% are federal loans for students.
After many years of sponsoring commercial schools, the Department of Education began to pursue a significantly more aggressive policy regarding their control. For years, students complained about commercial schools, stating that they misinform students and offer programs whose quality leaves much to be desired.
As it turned out, ITT is in a problematic situation since 2014 due to severe problems associated with ITT’s administrative capacity, which are related to the structure of the organization, its financial viability and the ability to provide high-quality services to students.
Three federal agencies and 18 state attorneys general initiated an investigation into ITT activities. The US Consumer Financial Protection Bureau filed a lawsuit against the company in February 2014 for “predatory student lending.”
Senator Dick Durbin of Illinois said students and taxpayers paid for Congress’s inability to regulate commercial schools properly. Durbin urged the department of education to provide students with information on educational opportunities.
“Today their predatory policies have been stopped. As a result of their actions, ITT Tech has threatened the future of tens of thousands of students across the country.”
More information
The Ministry of Education filed new bankruptcy filings last week, according to which it is possible to observe an increase in the cost of ITT Tech’s fall in more detail than ever before. These documents show how the Department of Education usually refuses or forgives federal student loans if the borrower has not completed his training program due to the closure of the school. The Department of Education says it had provided more than $ 141 million today in “closed school expenses” of debt to former ITT Tech students who visited ITT Tech when they suddenly closed.
But the actual cost of “closed school discharges” is expected to increase to more than three times the amount in the long run. Regarding the documents submitted to the court, the Ministry of Education continues to process claims for the cancellation of debts by former ITT students and assumes that the number of loan repayments to former students for tuition that they had to stop would be about $ 460,996,660. The government is investigating the company for fraud and dishonest marketing tactics. In August, the US Department of Education banned companies from recruiting students who received a federal education loan.
Back in April, the accrediting body stated that the ITT Technical Institute does not meet specific accreditation standards. The sale of ITT shares was suspended at the auction before the start of the exchange session.
What to do now?
As ITT Tech closed most of the students of the university are expecting help. Check special website created by the Ministry of Education to help ITT students to find detailed information regarding this issue. Besides, you can ask your questions to specialists of the Federal Student Aid Information Center at 1-800-4-FED-AID, and shortly, there are plans to organize a series of webinars. Do not forget to count Student Loan Discretionary Income.
According to Ted Mitchell, Deputy Minister of Education of the United States, all students received an e-mail message proving the news that ITT Tech closed its branches of the university and possible solutions to the situation with loans.