Tags: itt | new student enrollment | stopped | halted | department of education

ITT New Student Enrollment Halted After Decision by Feds

Image: ITT New Student Enrollment Halted After Decision by Feds

An ITT Technical Institute for-profit college location in Chantilly, Virginia on July 6, 2014. (Kristoffer Tripplaar/Sipa USA via AP Images)

By    |   Tuesday, 30 Aug 2016 12:56 PM

ITT Technical Institute halted new student enrollment on Monday after last week's decision by the Department of Education to block federal financial aid from being used there.

The for-profit college announced the decision to stop new-student enrollment with a single line posted on its website Monday, CNN reported.

Credit Suisse analyst Trace Urdan said the company's next move is unclear.

"The market for students that enroll without Title IV is essentially non-existent," Urdan wrote, according to the Indianapolis Star. "The expense of processing applications only to have them cancel once they learn [they are] Title IV ineligible is not worthwhile."

"ITT is effectively out of business," said Peter Appert, managing director senior research analyst at Piper Jaffray & Co, according to CNN Money. "I don't see any way they survive this."

The government's decision, announced Thursday, means new students can't use federal financial aid for classes but those already enrolled may continue to use the aid as long as the school is open, CNN said. It also requires parent company ITT Educational Services to increase its cash reserves, prove it has sufficient funding, and receive government approval before paying any bonuses, severances, or raises.

As part of an Obama administration crackdown on for-profit colleges, ITT has been under investigation over its financial performance, marketing, recruiting, and job placement numbers under allegations of fraud, deceptive marketing, and predatory lending. More than a dozen state attorneys general and two federal agencies are investigating ITT.

ITT also risks losing its accreditation from the Accrediting Council for Independent Colleges, with an accreditation meeting planned for December, The Washington Post reported.

If ITT closes, the government may forgive the federal loans of existing students, and students who have graduated or dropped out may be able to get their loans discharged.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
ITT Technical Institute halted new student enrollment on Monday after last week's decision by the Department of Education to block federal financial aid from being used there.
itt, new student enrollment, stopped, halted, department of education
298
2016-56-30
Tuesday, 30 Aug 2016 12:56 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved