Tags: itt tech | shuts | down

ITT Tech Shuts Down: Thousands of Students, Workers Out of Luck

Image: ITT Tech Shuts Down: Thousands of Students, Workers Out of Luck

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

By    |   Wednesday, 07 Sep 2016 06:16 AM

ITT Educational Services Inc. has shut down its ITT Technical Institutes, putting more than 8,000 employees out of work.

“We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a non-profit or public institution,” ITT Tech said in a statement.

The decision also affects “hundreds of thousands of current students and alumni,” the group noted.

The news of the shutdown comes after heavy investigation from government authorities based on allegations of “fraud and deceptive marketing tactics,” Reuters reported.

In August, things began to spiral out of control when the U.S. Department of Education banned the company from enrolling students receiving federal aid.

The “tens of thousands” of students who were preparing for the start of classes this month are now forced to explore other options in the aftermath of the shutdown.

“The damage done to our students and employees, as well as to our shareholders and the American taxpayers, is irrevocable,” ITT said.

Perhaps the only bright side to this news is that students could have their loans forgiven in the process, according to the Los Angeles Times.

The for-profit organization now says its focus is helping students obtain their records as they look to pursue other institutions to continue their education, the newspaper noted.

The ITT Tech shutdown comes as a shock to some people as there were 45,000 students enrolled in ITT Technical Institutes last year, bringing in revenue of $850 million, the LA Times said.

In its statement, ITT laid the blame on the U.S. Department of Education, saying it had "a complete disregard … for due process to the company."

Twitter wasn't very forgiving after ITT Tech shut down:

 

 

 

 

 

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ITT Educational Services Inc. has shut down its ITT Technical Institutes, putting more than 8,000 employees out of work.
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2016-16-07
Wednesday, 07 Sep 2016 06:16 AM
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